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Is it enough to implement country 3 for 3 years?

Reporter: Guosan Standard was formally implemented on July 1. After the introduction of regulations and before the implementation of the regulations, what changes have taken place in the domestic commercial vehicle market, including the entire vehicle and engine market, please ask Mr. Qi for us.

Cummins Emerging Markets General Engineering Consultant

Hey: I am engaged in technology. I can only say something outside the market. I think that China's state laws and regulations have been put forward for a long time. Our country's specific standards have been announced in 2005. Of course, from 2005 to the present three years, if according to the past, Europe, the United States, and Japan implemented new standards, the three-year period is not enough, and it usually takes a longer period of time. But for them, all of their technology did not exist at that time, a new standard came out, what kind of technology to use to meet the new standard, and it was necessary to develop it. It is not a product. The first thing to apply is what kind of standard this technology will be used for, so they will spend a lot of time researching and developing the technology itself. After technology is in place, it is also necessary to commercialize the technology and turn it into a product. This also requires a rather long process. Perhaps this technology has already existed, and then this technology becomes a commodity and becomes a commodity that can continue to exist and develop in this market. It may still be two concepts.

Therefore, for China, I think that if we were to study the technical route of the three national standards from scratch, it would obviously be too late to prepare for it. However, this is not the case. Our emissions standards compare with the United States, Europe, and Japan. Compared with these more developed regions and countries, we are indeed lagging far behind. We have a backward side and a good side. When we implement the National Third, the technology of Guosan is readily available and does not require China to re-investigate and develop it. Therefore, in this sense, if we take this matter seriously, we will make serious preparations. I think that the three years should be sufficient and should be ready. But unfortunately, after we announced the three national standards, we have always had a voice. We can't say that the country cannot implement it and the country cannot. Of course, do you say that there is no difficulty? It cannot be said that there are certain difficulties, but I think that in the past few years, there is always such a fallacy or that there is such a statement that actually affects our automotive industry and affects our engine industry. Everyone is watching it. In the end, will the State Council implement it on time? Will it be strictly enforced? There is always a suspicion. The result of this skepticism has caused some delay in the preparation of our country for commercialization. My own opinion is that preparation is not enough.

According to the original national standard plan, it should start from January 1 this year. All products produced and sold should meet the National III standard. It should be said that starting from January 1 this year, it is not allowed to produce products of the second level of the country. However, due to the fact that the preparation for productization did not meet the demand, it was the last resort. In fact, it was postponed for half a year, although it was only allowed to sell stocks. We all know what inventory means.

Now on July 1, no more EURO cars will be allowed to re-sell and reproduce. However, for vehicles below 3.5 tons, although it did not say that the implementation was postponed, it also said that it would take a year to digest the process. In fact, it was tantamount to postponing it. Technology for the enterprise, the diesel engine industry, the automotive industry is not a big problem, the real problem for such reasons, commercial preparation is not enough.
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