On October 28, NBD reporter Luo Jie reported that the upcoming "Consumer Vehicle Fuel Consumption Limits" set to take effect in July next year will bring significant changes to the Chinese auto market. This regulation is expected to shake up the industry, as high-emission and large-displacement vehicles may gradually disappear from the market. In contrast, more fuel-efficient and eco-friendly cars are likely to gain popularity among consumers. Experts have pointed out that while the new standard primarily focuses on fuel consumption, it's not just about engine improvements. It involves a wide range of technical aspects, including vehicle design, materials, and testing — all of which reflect the overall capability of an automaker. The cost of compliance is high, both in terms of time and money, which could put pressure on smaller or less-capable manufacturers. Jin Yuefu, an engineer at the China Automotive Research Center, noted that there are over 100 car manufacturers in China, many of which are small and fragmented. The introduction of this standard is likely to trigger a reshuffling in the industry, effectively raising the entry barriers for the automotive sector. Dr. He Dongquan from the U.S. Energy Foundation’s Beijing office said that the development of these standards reflects the country’s long-term policy direction — moving toward more energy-efficient and environmentally friendly vehicles. As a result, mini-vehicles, which were previously restricted, may find new opportunities under the new rules. With global energy shortages and rising oil prices, compact cars with low displacement and fuel consumption are becoming increasingly attractive. Moreover, the new regulations are pushing automakers to commit more seriously to the development of new energy vehicles. While foreign automakers have strong financial and technological resources, Chinese companies can also seize this opportunity by adopting energy-saving technologies to develop their own new energy models. This shift could mark a turning point for the domestic auto industry, helping it compete more effectively in the global market.

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