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Beijing addresses vehicle emissions
by Staff Writers
Beijing (UPI) Sep 3, 2013


Strong Chinese demand to pull global car market: Moody's
Paris (AFP) Sept 04, 2013 - Global car sales will grow by 4.8 percent next year pulled by unexpectedly strong demand in China, the credit rating agency Moody's forecast on Wednesday.

In a report, Moody's also upgraded its estimate for growth of the world car market this year to 3.2 percent.

The agency said that the Chinese car market was growing faster than gross domestic product in the Asian economic powerhouse.

Consequently it was revising upwards its estimate for the growth of Chinese demand for cars to 10.0 percent from an estimate in January of 7.0 percent, for both this year and next.

Moody's held to its forecast that the car market in Europe would contract by 5.0 percent this year from the 2012 level.

The agency said that in 2014 the European market would rally by 3.0 percent, but this was a downgrade from a previous estimate of growth of 5.0 percent next year.

Another study by auditing and consultancy group PwC in August said that the global car market would expand in the next few years, mainly because of growth of demand in China where sales were expected to double by 2019.

Moody's said that the outlook for demand for new cars in Brazil was clouded by a context of increased interest rates, high inflation and growing household debt.

There were also risks for the future of demand in Russia.

European suppliers of new equipment to the car industry depended on these markets to limit losses in western Europe where weak demand and over-capacity would continue to weigh on the margins of French manufacturers Peugeot Citroen, and on Fiat of Italy, Moody's commented.

The margins of German suppliers for the manufacture of new cars would continue to fall, but margins for Japanese automakers would be boosted by the fall of the yen.

Automakers in the United States should be able to maintain their margins in the next 12-18 months, but these could be slightly compressed by increased competition and by a slowing of growth of the US economy, Moody's said.

Beijing has announced new measures to cut vehicle emissions aimed at curbing pollution.

China's capital city has grappled with severe levels of pollution particularly since January, when Beijing's air quality index regularly exceeded 500, the scale's maximum reading.

Car emissions are believed to account for one-third of PM2.5 -- a major air pollutant, which refers to dangerous airborne particles measuring 2.5 microns in diameter -- in most congested areas in Beijing.

A notice on the Beijing government's website Monday said the city is considering imposing a congestion fee for cars. "Whoever pollutes the air is responsible to clean it up," state-run China Daily on Tuesday quoted Fang Li, spokesman for the Beijing Environmental Protection Bureau, as saying. The government did not indicate how the fees would be imposed or paid.

Beijing currently restricts private cars one workday a week, according to the last digit of the license plate.

"Despite the license plate restriction, the number of vehicles in the city is still overwhelming and contributes substantially to the city's pollution. It's time the city comes up with a stricter regulation," said Yu Jianhua, who heads up air pollution management at the bureau.

The proposed stricter regulation, which would prohibit certain vehicles from seriously congested areas, is expected to further reduce vehicles on the roads.

Details of the plan are still being worked out, Yu said, noting that the government will look at similar initiatives in Milan, Paris, London and Tokyo as a model for Beijing's plan.

"Many cities worldwide have come up with congestion charges, and most of them prove effective," he said.

The Beijing government also aims to keep less than 6 million vehicles licensed by the end of 2017, from the approximate 5.35 million that are licensed now.

Beijing aims to reduce PM2.5 concentration to 60 micrograms per cubic meter by the end of 2017, down 25 percent from 2012.

The World Health Organization recommends particulate levels be kept to less than 25 micrograms per cubic meter. In January, Beijing air quality levels reached nearly 900 micrograms.

Separately, Chinese Vice-Premier Zhang Gaoli, during an inspection tour Tuesday in Beijing to address air pollution prevention and treatment, said the city should cut carbon emissions by opting for high-quality coal for electricity and to choose natural gas for winter heating.

China still relies on coal for about 70 percent of its energy needs.

Noting that the air quality in Beijing has fallen beyond people's expectations, "the strengthening of treatment efforts can no longer wait," Zhang said.

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