Auto industry set for adjustment period

　　Sector needs more sustainable basis: experts

China's commercial vehicle industry will enter an adjustment period of three to four years, as the economic slowdown dampens demand and a sustainable development model requires greater transport efficiency and reduced emissions, experts said at a transport industry seminar over the weekend.

"The Chinese commercial vehicle market's fast development in the past decade was not sustainable and came at the cost of high emissions, road damage and frequent traffic accidents," Feng Feng, manager of the commercial vehicle working group at the Beijing Representative Office of the European Automobile Manufacturers' Association, told the seminar held in Sanya, South China's Hainan Province on Friday.

Sales of commercial vehicles in China fell by 6.53 percent year-on-year to 3.79 million units in 2014, compared to annual growth of 6.4 percent in 2013, according to the China Association of Automobile Manufacturers.

Feng said the industry needs to adapt to China's "new normal" of slower growth, as well as striking a balance between safety, environmental friendliness and growth.

Meanwhile, the industry's downturn has not affected foreign automakers' efforts to increase their presence in the Chinese mainland market.

"China is still a huge market for heavy-duty trucks despite the slowdown," Claes Svedberg, senior vice president of China Joint Ventures at Volvo Group, told the Global Times on the sidelines of the seminar. Sales in China "accounted for 42 percent of those in the global market in 2014," he said.

Sweden-based Volvo launched a joint venture with Dongfeng Motor Group, China's largest maker of heavy-duty trucks, on January 26 in Shiyan, Central China's Hubei Province, with Volvo holding a 45 percent stake in the unit and Dongfeng taking the rest.

The venture, which will make Dongfeng-branded commercial vehicles, is part of Volvo's ambition to strengthen its position in China's truck market. However, it took more than 10 years for the two sides to conclude the deal.

Other European carmakers have already made similar moves. In 2009, German truck maker Man SE bought a 25 percent stake in China National Heavy Duty Truck Group. In 2012, Daimler AG set up a joint venture with Beiqi Foton Motor Co that produces medium- and heavy-duty trucks.

"From the technology point of view, it is not too late to start the venture, as China needs to improve its transport efficiency and reduce emissions, and we have a lot to contribute [in that regard]," Svedberg said.

After lengthy delays, China began to implement the national stage 4 (NS4) emission standards - similar to the Euro 4 standards - for diesel vehicles on January 1, 2015, a move that industry analysts said will cause the removal of trucks and lorries that produce high levels of pollutants and will benefit those with more advanced technology.

In 2014, Dongfeng Motor had a 28 percent share of the market for vehicles that meet the NS4 standards, ranking No.1 in the domestic market. The company said it aimed to strengthen its leading position in 2015, the Xinhua News Agency reported on January 7.

Experts still have confidence in the commercial vehicle industry's long-term prospects.

"In the long run, China's 'One Belt, One Road' initiative will bring new opportunities for the industry, and the country's determination to advance the rule of law will also improve regulation of the auto sector and help with sustainable development," Feng said.

China is mulling an amendment to the Law on Road Traffic Safety, and severe overloading could be made a criminal offence, Zhou Wenhui, an expert with the Road Traffic Safety Research Center of the Ministry of Public Security, said at the seminar.