On April 23, the Chinese government announced a delay in the implementation of China 6 emission standards for light-duty vehicles. Originally scheduled for the date of July 1, 2020, the China 6 emission standards for light-duty vehicles has been moved and will now be in effect January 1, 2021.

As a result of the COVID-19 pandemic, new car sales have dropped by 42.4% in Q1 2020. The decision to maintain the China 5 emission standards until the start of 2021 will provide original equipment manufacturers (OEMs) with the opportunity to move their current inventory of light-duty vehicles produced prior to July 1. Light-duty vehicle production after this date must follow the China 6 emission standards. Based on current policy, China VI emission standards for heavy-duty vehicles have not been delayed and will remain on their original schedule.

Although the China 6 light-duty emission standards are delayed, 16 cities, including Beijing and Shanghai, have implemented China 6 emissions standards ahead of the July 1 deadline. During this time, most OEMs will proceed with their original plan to upgrade factory fill oils to 0W-20 ILSAC GF-6/API SP or ACEA C5 oils for their CN 6 cars, even if the initial demand may be lower than originally expected.

To further support the automotive industry during this time, new policies have been implemented in hopes of stimulating the automotive market for both light-duty and heavy-duty vehicles. These efforts include, but are not limited to, the release of new car loan policies, permittance of more license plates in areas with stringent policies, elimination of 1 million vehicles that only meet China 3 emissions standards or below and reduction of transaction fees for the used car market.

For more information on the delay of China 6 emission standards and how it may impact your business needs, please contact your Lubrizol representative.