After the second wave of subsidy fraud fines were announced: the technical threshold of new energy vehicles still needs to be improved

　　Introduction

Although the fine punished direct subsidy fraud, it did not solve the disguised subsidy fraud of those who made low-cost cars that barely met the 150-kilometer range and 100-kilometer-per-hour top speed, and whose costs did not reach the subsidy amount but still could enjoy the central and local subsidies of 54,000 yuan.

Following the issuance of fines to four new energy companies with "license plates but no cars" for subsidy fraud last year, on February 4, the Ministry of Industry and Information Technology's website announced seven new energy vehicle manufacturers involved in "subsidy fraud" and issued administrative penalty decisions to seven companies including Jinhua Youth Automobile, SAIC Tangshan Bus, Chongqing Lifan Passenger Vehicle, and Zhengzhou Nissan Automobile.

"The Ministry of Industry and Information Technology has issued another fine, which shows the country's attitude and determination to attach great importance to and seriously deal with the "fraudulent subsidies" incident of new energy vehicles." On February 4, a senior executive in charge of new energy vehicle business of SAIC Motor said. However, in his opinion, the punishment can still be more severe.

The head of another car company also believes that although the state has punished fraudulent subsidies, it still cannot fundamentally solve the problem of low-quality electric vehicles that have achieved the same range but are built at low cost enjoying the same subsidy treatment. He suggested that the technical threshold of new energy vehicles should also be raised to promote the upgrading of the new energy vehicle industry and create a more fair and reasonable competition environment.

The cost of breaking the law needs to be increased

"The subsidy fraud in 2015 was a large-scale incident and it should be dealt with seriously. This will guide the healthy and sound development of the industry," said most executives of new energy vehicle companies.

Compared with the phenomenon of "having license plates but no cars" of four companies last year, the violations of the seven companies punished this time are more complicated and the time span is longer.

Prior to this, on December 20 last year, the Ministry of Industry and Information Technology issued administrative penalty decisions to four subsidy fraud companies involved in "having license plates but no cars", including Suzhou King Long Bus, Henan Shaolin Bus, Chery Wanda Guizhou Bus, and Shenzhen Wuzhoulong Automobile.

"The impact of new energy vehicle subsidy fraud is severe. Punishing illegal companies and cracking down on "subsidy fraud" can ensure the sustainable and healthy development of the entire industry." On February 4, senior executives of Yutong Auto's new energy business believed that this is also a prerequisite for my country's new energy vehicles to participate in international competition and seize the commanding heights of new energy.

Miao Wei, Party Secretary and Minister of the Ministry of Industry and Information Technology, also emphasized at the 2017 China Electric Vehicle 100 Conference that special inspections will be carried out on the promotion and application of new energy vehicles in the future, and fraudulent subsidies will be severely cracked down.

In interviews with reporters, many new energy executives of automakers still believe that the punishment is not strong enough.

Although fines were issued, the company can still conduct normal new energy vehicle business after rectification is completed. "The cost of breaking the law is much lower than that in foreign countries, which is also the main reason for large-scale risk-taking and illegal activities," said an unnamed person in charge of a car company.

Compared with the punishment the United States imposed on Volkswagen for the "emissions scandal", this punishment is much lighter. On September 18, 2015, the U.S. Environmental Protection Agency (EPA) announced that Volkswagen had installed a special software in its diesel vehicles sold in the United States. The software can identify whether the car is undergoing exhaust emissions testing by the U.S. government. If the car is found to be undergoing testing, the entire emission control system of the car will be activated to make the car's exhaust emissions meet the standards. However, the car will not be activated during daily use, resulting in daily nitrogen oxide emissions of up to 40 times the legal standard. For this reason, Volkswagen faces a huge fine of $37,500 per car, a total of $18 billion, which will also be the highest fine in the history of the automotive industry; at the same time, Volkswagen's CEO resigned, and the head of Audi R&D, Porsche engine, and Volkswagen's CEO in the United States were also dismissed.

There are many low-cost disguised frauds

In addition, a senior executive of a car company's new energy vehicle business believes that "although the fine punishes direct subsidy fraud, it does not solve the disguised subsidy fraud of those who make low-cost cars that barely meet the 150-kilometer range and 100-kilometer-per-hour maximum speed, and whose costs do not reach the subsidy amount, but can still enjoy the 54,000 yuan subsidy from the central and local governments."

Although these vehicles meet subsidy requirements, they do not meet certain crash safety levels and do not need to prove they meet lifespan degradation requirements.

These products were not included in the subsidy fraud list this time. However, these new energy vehicles generally use batteries with poor performance, quality and safety, and have even been found to burn before. These subsidy fraud loopholes are not only hidden, but also have nothing to do with technological progress, and there are safety hazards. The emergence of such vehicles is, on the one hand, a policy loophole, and on the other hand, an alternative subsidy fraud that exploits policy loopholes. Many large manufacturers have generally called for the elimination of such subsidy fraud through technical barriers.

"For new energy vehicle subsidy policies to be truly fair and objective and to fill loopholes in subsidy fraud while promoting industrial upgrading, we still need the introduction of new energy subsidy policies." The executives of the above-mentioned automakers in charge of new energy vehicle business believe that the purpose of subsidy issuance is to support industrial progress. Therefore, in addition to subsidies based on mileage, there must also be certain restrictions on the quality of new energy vehicles, such as vehicle safety and reliability. There must be certain requirements, so that companies that do not have the ability to build cars and cheat on subsidies under the guise of new energy will be eliminated voluntarily.

The passenger car market is preparing a subsidy policy of "subsidy + points system". The lower the average fuel consumption of the car company, the more new energy vehicles are sold, the higher the points are, and the points can be converted into profits for the car company. After the real marketization, low-quality new energy vehicles will not be recognized by consumers, and there will be no way to cheat on subsidies. In short, fundamentally controlling subsidy fraud is still a systematic project.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.