MIIT Releases Dual-Credit Compliance Results for 108 Passenger Car Makers; 48 Fail to Meet Standards

On July 2, 2024, China’s Ministry of Industry and Information Technology (MIIT), together with three other government departments, jointly released the 2023 “dual-credit” compliance results for 108 passenger vehicle manufacturers. Of these, 60 companies met the requirements, while 48 failed to comply. Non-compliant enterprises include joint ventures such as FAW-Volkswagen, SAIC Volkswagen, BMW Brilliance, and Beijing Benz, as well as domestic brands like Chery, Dongfeng Passenger Vehicle, BAIC Motor, and GAC Trumpchi. Among the non-compliant firms, 20 recorded negative credits in both fuel consumption and new energy vehicle (NEV) categories; apart from two domestic brands, the rest are primarily joint ventures or imported vehicle manufacturers. China’s “dual-credit” policy evaluates automakers based on two metrics: average fuel consumption credits and NEV credits. If a company has negative credits in either category and fails to offset them through credit trading or carryovers, it may face penalties such as suspension of applications for high-fuel-consumption models, production capacity restrictions, or even revocation of manufacturing licenses. Data shows that in 2023, the industry generated 53.55 million positive fuel consumption credits and 9.41 million negative ones, while NEV credits totaled 21.94 million positive and 1.6 million negative. Negative credits were concentrated among companies with high proportions of internal combustion engine (ICE) vehicles and slow transitions to NEVs—most of which reported NEV penetration rates below 5% and ICE vehicle shares exceeding 80%, or even 90%. In 2023, the industry’s average fuel consumption dropped to 3.38 liters per 100 kilometers, largely driven by NEV leaders such as BYD. In contrast, the average fuel consumption of 21 imported vehicle brands reached 7.62 liters per 100 kilometers. Under current policy, the required NEV credit ratio will increase annually: 38% in 2025, 48% in 2026, and 58% in 2027. Additionally, since the implementation of the WLTC testing cycle, plug-in hybrid electric vehicles (PHEVs) and “oil-to-electric” converted models have seen significantly reduced credit benefits. Imported brands, which have been slow to introduce NEV models, now face heightened compliance pressure. To date, none of the non-compliant companies have publicly responded regarding their 2025 dual-credit obligations. According to regulations, these enterprises must achieve compliance—typically by purchasing credits—or face corresponding regulatory consequences.