State-Owned Automaker’s Boss Calls for Fairer Treatment for Conventional Cars

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Zeng Qinghong, Party Secretary and chairman of Guangzhou Automobile Group speaking at the China Auto Chongqing Summit. Photo: CACS

The chairman of a state-owned automaker has called for the government to stop treating conventionally powered cars differently from new-energy vehicles (NEVs) since so much of China’s electricity is generated with fossils fuels.

Guangzhou Automobile Group Co. Ltd. (GAC) (601238.SH) Chairman Zeng Qinghong suggested at an industry event Thursday that policymakers should avoid resorting to a “one-size-fits-all” approach for the auto industry.

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GAC Chairman Zeng Qinghong urges the government to treat conventionally powered cars and new-energy vehicles (NEVs) equally, noting that China's electricity generation relies on fossil fuels.
NEVs made up 32.4% of Chinese auto sales in early 2023, with a rise to 36% in April.
Hybrid EVs, considered conventional vehicles in China, form over one-third of GAC Toyota's sales, and further growth is anticipated if government policies change.

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Who’s Who

Guangzhou Automobile Group Co. Ltd.: Guangzhou Automobile Group Co. Ltd. (GAC) is a state-owned automaker in China. Its Chairman, Zeng Qinghong, advocates for equal treatment of conventionally powered cars and new-energy vehicles (NEVs). GAC's hybrid electric vehicles (EVs), which are not classified as NEVs, accounted for over one-third of GAC Toyota Motor Co. Ltd.'s sales in 2023. The company argues that hybrid EVs should be promoted as a green technology.

GAC Toyota Motor Co. Ltd.: GAC Toyota Motor Co. Ltd. is a joint venture involving Guangzhou Automobile Group Co. Ltd. According to GAC General Manager Feng Xingya, hybrid EVs made up more than one-third of GAC Toyota's total car sales in 2023. Feng forecasted a boom in hybrid EV sales within the next two to three years if the government starts treating conventional cars the same as new-energy vehicles.

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What Happened When

First four months of 2024：: About 32.4% of the cars Chinese automakers sold were NEVs.

March, 2024：: GAC General Manager Feng Xingya provided data during earnings briefing that in 2023, hybrid EVs accounted for more than one-third of GAC Toyota Motor Co. Ltd.’s total car sales.

April, 2024：: About 36% of the cars Chinese automakers sold were NEVs.

Thursday, June 6, 2024：: GAC Chairman Zeng Qinghong suggested at an industry event that policymakers should avoid resorting to a 'one-size-fits-all' approach for the auto industry.

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