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For two consecutive years, Russia has become China's largest exporter of automobiles. Many ambitious Chinese commercial vehicle companies have formulated ambitious plans for export to Russia in the coming years. However, in 2008, the situation has changed significantly: On January 1, Russia began to implement the Euro III emission standard; after July 1, China's certification of commercial vehicle exports to Russia rose from 11 items to 55 items. For domestic auto companies, there are certain difficulties in completing the scheduled export targets this year.
“In the past, commercial vehicles in China only needed 11 tests to be exported to Russia, but 55 tests must be passed after July 1. Otherwise, they cannot enter the Russian market,†said Sheng Guofei, of the China-Russia Electrical and Mechanical Commerce Chamber. This is only one of the problems encountered by Chinese auto companies this year. In fact, since January 1 this year, since the implementation of Euro III quality certification in Russia, the Chinese auto companies have become increasingly difficult on the road to Russia.
Russia is one of the major export markets for Chinese automotive products. In 2006 and 2007, Russia became the largest exporter of Chinese automobiles for two consecutive years. Many ambitious Chinese auto companies have set ambitious targets for export to Russia in the coming years. However, in 2008, the situation has changed significantly. This year's export situation to Russia is exceptionally difficult. "For domestic auto companies, there are certain difficulties in completing the planned target for Russia's exports this year," said Sheng Guofei.
For 11 tests turned into 55 items, Sheng Guofei stated that the original simplified test policy is applicable to non-“Geneatical Agreements†(signed in 1958) parties such as China, which only detects 11 automotive technical indicators and applies to 150 Russian vehicles. Exports of small batches left and right, but at the end of last year, Russia’s Technical Supervision Bureau, together with the Automobile and Automotive Engine Research Institute, revised the original automobile inspection system. The new inspection regulations will prohibit the implementation of the existing non-GNE Agreements on cars and The simplified test carried out by passenger cars means that starting from July 1 this year, commercial vehicles exported to Russia need to have 55 quality standards. It is understood that after the implementation of the new policy, China and India are all countries that are affected more.
"The implementation of the new regulations will cause a certain period of time to slow down the growth of China's auto exports to Russia." Sheng Guofei said that at present, China's exports to Russia account for an important position in small-batch exports. This regulation will enable small-volume car exporters to Russia's exports have difficulties, and the increased automotive technical indicators will also increase the cost of automobile inspections and customs clearance time.
In addition, in the past, most domestic automobile manufacturers distributed distribution rights to multiple agents, while agents used small-batch export methods to reduce inspection costs. Now, the implementation of this regulation will change the structure of existing export companies. Auto companies will adopt measures such as improving agency standards, cancel small and medium-sized trading companies to represent their export products, and select powerful foreign agents.
In addition, the new regulations apply to small batches and approvals for vehicles imported as vehicles only for the same model and type in the same brand, and only once a year. Great Wall Motors is one of the Chinese auto brands that entered the Russian market earlier. Chang Gengshen, the manager of Great Wall International Trading Department, said that based on the understanding of the local market, the company had obtained the 2008 quality certification a few months ago and is now developing. The certification work in 2009, "because the company made preparations in advance, so the impact is less."
However, some small and medium-sized enterprises may suffer a greater impact. Large-scale automobile manufacturers pay more attention to research and development, own their own laboratories, and maintain cooperation with foreign authoritative certification organizations all the year round. Smaller companies do not have these conditions. The improvement of quality standards certification will undoubtedly eliminate them from the market.
Euro III certification delays the pace of exports
From January 1 this year, Russia began to implement the Euro III standard and in 2010 it will implement the Euro IV standard. It is worth noting that nearly 100 vehicles that failed to meet Euro III standards at the Manzhouli port in Inner Mongolia in the first quarter of this year were returned. The Manzhouli port in Inner Mongolia is one of the most important ways for Chinese auto exports to Russia.
China has the strength to produce automobile enterprises that meet Euro III standards. There are many companies whose technical capabilities can only meet the production of Euro II cars. Some auto companies’ products could not be exported to Russia, causing a year-on-year growth in exports to Russia in the first quarter of this year.
Some domestic companies have already received a three-month Euro III certification from Russia, but many have only obtained the certificate in March of this year, and the certificate on June 30 has expired. Industry insiders explained that it takes at least 3 months to complete the negotiation, production of cars, and transport of cars to Russia. A company received a certificate in March. The car was shipped to Russia in June, and the certificate was invalidated. Unable to sell. Even though it has passed a three-year emission certification, by 2010, Russia will implement the Euro IV emission standard, which is a new threshold for Chinese companies.
Enterprises must comprehensively improve their technological level
From July 1, the 55 standard certifications in the new policy include standards applicable only in Russia, such as fuel tank certification. It is understood that most of China's commercial vehicle fuel tanks are screw cap design, and it will be limited to export to Russia. According to Russian requirements, whether the fuel tank cap on a commercial vehicle tank is opened or capped, it must have a corresponding display on the driving dashboard; the tank and tank cap must meet certain design standards to ensure that the car is overturned. Fuel will not leak. Sheng Guofei stated that Russia aims to ensure the quality and technical level of imported automobiles. This requires domestic automobile companies and engineering designers to seriously study Russian technical standards and regulations.
In the face of Russia's continuous improvement in the threshold of automotive quality certification, the root of the problem lies in the Chinese auto companies themselves. Chinese companies wanting to enter Russia are not only asking what the other party should do and asking how the market should be transformed, but they must improve their competitiveness by improving their own technology, services, and parts supply levels.
Since European and American, Japanese and Korean commercial vehicles have already reached Russia's requirements in terms of technology and emission standards, their products are relatively unobstructed when they are exported to Russia.
In July last year, the Russian Ministry of Industry and Energy decided to suspend the approval of any production project that will assemble Chinese cars in Russia. The four projects reviewed by the Russian Ministry of Economics and Trade regarding the assembly of Chinese cars will continue to be delayed in order to protect the domestic auto industry. Sheng Guofei stated that due to a series of problems in cooperation with Russia in the industrial assembly projects of Chinese auto companies, the current form of export-oriented cooperation is more vulnerable to Russian tariffs, quotas, and other restrictions, and it is prone to passive responses. In terms of technology, China's auto companies should comprehensively improve their technical level, make plans for possible technical barriers, and need to further align themselves with developed countries in terms of technical standards.
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