Chinese auto dealers are exploring many of the same issues as their Canadian counterparts.
On behalf of the New Car Dealers Association of BC (NCDA) and our national Canadian Auto Dealers Association (CADA), I recently travelled to China at the invitation of our colleagues at the Chinese Automobile Dealers Association (the other CADA). I was honoured to be invited back to speak at their convention and meet with dealers, OEM representatives and other officials to support the ongoing relationship with one of the world’s largest economies in the world.
Their economy is impacted directly by the strength of their auto industry which saw 24.5 million vehicles sold last year coupled with an expected 27 million to be sold for 2016. At this time last year, I was privileged to join our BC Premier, Christy Clark, and a distinguished delegation of BC business and Aboriginal Leaders on a Trade Mission to various cities to China.
During our time in Beijing, I joined the Chairman of the Chinese Dealers Association in signing a Memorandum of Cooperation between our two organizations. Later on that trip, I was honoured to be asked to speak as part of the International Forum at the Chinese Dealers Convention in Xiamen. Since then, we have hosted a delegation from the Chinese dealers at our 2016 Vancouver International Auto Show in March, and as I mentioned, I just recently returned to China for various meetings and to once again speak at the Chinese Dealers convention, this time in Zhuhai.
At the 2016 convention, more than 2,000 dealers and suppliers were gathered. My Chinese hosts asked me to speak about our efforts in partnership with the BC Government around the environment. Specifically, the Clean Energy Vehicles program (CEV-forBC) and BC SCRAP-IT programs – two incentive programs that we currently support in the province of B.C.
During my remarks, I outlined the importance of incentivising consumers to consider electric vehicles (EVs) when making their next vehicle purchase. The CEVforBC rebate cuts up to $5,000 off the pre-tax sticker price of qualifying new EVs, and is often used alongside B.C.’s SCRAP-IT initiative, which offers various incentives if someone scraps a qualifying older-model vehicle.
The aim of these programs is to get older, higher-polluting cars off the road and drive consumers toward zero emissions models. These initiatives embrace the auto sector’s duty to combat climate change while promoting the continued success of this thriving industry. While in China, i joined leaders of national New Car Dealer Associations from all around the globe, including the United States, Russia, Germany, France, UK, Italy and Brazil! Each country joining the convention had valuable remarks and insights about growing and enhancing the auto industry.
In Beijing, I also had the opportunity to visit the Beijing Electric Vehicle Co., Ltd (BAIC BJEV) research and development centre, which solely focuses on EV production in China. Within the global market share for EV’s, BAIC BJEV has increased by 9.9 percent from 2014 to 2015. In Spring 2016, the company created its first compact electric SUV, which appeared on the market and is expected to be a core model for the company moving forward.
They have also developed an automated system to replace a discharged battery pack on their EV Taxi with a charged one in three minutes. Something of interest to taxi companies in North America perhaps? Throughout the convention, the various auto dealer associations reviewed and discussed different types of EVs – a topic that representatives from every country attending were interested in engaging. Some of the presentations even touched on the idea of time-share leasing, an approach which could save you money by renting while also protecting the environment.
With the recent news coming out of Beijing noting China will no longer approve new gasoline-powered vehicle factories, it’s no surprise that topics surrounding alternative opportunities like going electric was such a high priority for discussion during my visit. Ultimately, as we all move forward within our respective jurisdictions, it’s important to collaborate with other new car dealer associations to continue to learn and work with one another.
We work hard in B.C. to implement best practices within the industry and remain relevant to our members and through meetings like these, it’s another avenue to ensure that’s exactly what we’re doing.
