VW and Other Automakers to Benefit From China’s Toxic Smog image

GM and VW might benefit from China’s tighter vehicle curbs and emissions regulations that would match Europe’s.

As the Chinese government becomes more concerned about the toxic smog which spreads in Beijing and other major cities, it considers new emissions standards and tighter vehicle curbs. This means that several overseas automakers such as VW, GM and Hyundai might benefit from these changes as the new rules might spur customers to buy new vehicles manufactured according to the emissions standards, which are already put into effect in other markets.

“All foreign car and truck makers are capable of meeting very advanced emission standards and will have no problems,” said Ashvin Chotai, managing director of Intelligence Automotive Asia in London. “So it would put Chinese brands at a disadvantage.”

According to Christoph Ludewig, a VW spokesman for the company in Beijing, the automaker has reduced emissions and fuel consumption by 20% since 2005, therefore the company is ‘well prepared’ for the new vehicle standards. BYD might also benefit from these changes as the government plans to replace old bus fleets with electric models.

China plans to have on its streets 500,000 EVs by 2015 and 5 million by 2020. According to Bloomberg New Energy Finance electric vehicle sales totaled 13,000 units in China from 2009 to 2011.