Policies for Auto Investment Project Management Improvement are Brewing

Nianyong, the Secretary of National Development and Reform Commission Industry Department said several days ago that relevant departments are drafting the "Opinions on Improving the Management of Automobile Investment Projects", which including the prohibition of the approval of new traditional auto production enterprise investment projects, strictly controlling of the traditional fuel vehicles to expand the capacity of the existing automobile enterprises, strengthening automobile production monitoring, analyzing and early warning. At the same time, the opinion would help standardize the investment project of new energy vehicle, vigorously promote the battery and other core technology research and charging infrastructure construction, guide rational investment of enterprises and social capital. According to the principles that the person who approve the project shall also be in charge, to implement the regulatory responsibility of automobile investment projects and strengthen supervision.

At the beginning of the year, National Development and Reform Commission made it clear that in 2017 the government will further promote the reform of the supply side, especially in the overcapacity cut. Experts believe that the automobile industry is most likely to be incorporated into the ranks of overcapacity cut.

In actual operation, the automobile industry has begun the pace of overcapacity cut. In the first half of 2016, 13 automobile enterprises such as Shuanghuan and Qingling were revoked the auto production qualification by Ministry of Industry and Information Technology. This means that the automobile industry has begun the overcapacity cut process, some poor management enterprises which can not meet the market demand are accelerating the delisting. Supervising the backward production capacity out of the market and achieving the integration and upgrade of resources have become a normalcy of the automobile industry.

In the face of overcapacity, it not only be given a high degree of vigilance in the traditional automotive industry, but also have been strictly controlled in the field of new energy vehicles. At present, the new energy automobile like BAIC BJEV and other several enterprises own the pure electric vehicle production qualification. It is understood that there are currently more than 200 enterprises in the application of new energy automobile production qualification. The industry believes that the strict control of the threshold for access to new energy vehicles is a possible way to prevent overcapacity.