A few days ago, it was reported that Chengdu is set to raise its vehicle emission standards from Euro I to Euro III starting in March this year, as part of a broader effort to improve air quality and protect the environment. The announcement quickly brought attention back to the environmental impact of vehicles. According to local reports, most cars currently sold in Chengdu already meet the Euro III standard, meaning the new regulation is expected to have minimal impact on the auto market.
According to an official from the Chengdu Environmental Protection Bureau, the upcoming restriction on vehicle entry will only target highly polluting vehicles below the Euro I standard. Vehicles with Euro I and Euro II emissions will not be banned immediately. Instead, those below Euro III will be gradually phased out over time.
The reporter found that most cars now available in Chengdu’s auto market have already met the Euro III standard, including several small models that reached this level last year. For example, while the Alto model still meets the Euro II standard, other models from Changan Suzuki are already at Euro III. Other dealers noted that due to earlier environmental policies in Beijing and other cities, automakers had already upgraded their engine technologies, ensuring that most vehicles on the market now comply with emission standards. As a result, the Chengdu auto market is expected to remain stable.
However, the situation is different for commercial vehicles. Despite the nationwide implementation of National III emission standards, sales of these vehicles in Chengdu have been sluggish. Many consumers are hesitant due to the high price increase compared to older models. Some buyers even prefer to purchase older National II vehicles instead of paying significantly more for the newer ones.
According to recent data from the China Association of Automobile Manufacturers, total commercial vehicle production in January increased by 9.15% compared to the previous month, but sales dropped by 3.19%. This decline reflects consumer reluctance to pay the higher prices associated with National III vehicles.
In response, some manufacturers are taking steps to reduce costs, such as optimizing management, improving efficiency, and adjusting allocations. However, industry experts like Chen Chaoliang from Youth Automotive Group note that the main cost increases come from raw materials like engines and steel, making significant price reductions unlikely.
Car commentator Jia Xinguang pointed out that many consumers still focus only on the initial purchase price rather than considering long-term costs like maintenance, fuel efficiency, and reliability. To address this, several companies are shifting their marketing strategies to highlight the overall cost of ownership. For instance, Ling Shihai from Sichuan Yinhe Automobile Group is working on campaigns that emphasize the long-term benefits of National III vehicles. Similarly, Wang Dayong from Chengdu Bus Co., Ltd. said the company will promote the use of environmentally friendly, National III-compliant vehicles this year.
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