April 2019 - MPR China Certification GmbH

Ford will end independent business in India

Ford’s announcement that it will withdraw from the Indian market is a step that has recently been taken by a number of other Western carmakers. By the end of 2017, General Motors had drastically reduced its operations in India and stopped selling its vehicles in the local market, which had given a severe setback to the strategy of India’s Prime Minister Nardenda Modi to promote the domestic automotive industry. Ford has invested more than $2 billion in India for two decades and currently has a market share of only 2 percent – in a market that is considered one of the fastest growing automotive markets alongside China.

The exact ownership structure for the new joint venture is currently being negotiated. According to two sources, Ford will establish a new division in India, which will hold 49 percent of the shares, while Mahindra owns 51 percent. The current business, ownership and employees will be transferred to the new division, but the transaction is close to at least a partial exit of Ford from the Indian market.

Ford business India

Ford currently manufactures and sells its vehicles through a wholly-owned subsidiary, but has had a strategic partnership with Mahindra since 2017 to develop new vehicles, including SUVs and electric model variants. In the past, Ford has restructured its global operations to save $11 billion over the long term. Last month, the Russian Ford joint venture closed two assembly plants and one engine plant and also withdrew from the passenger car market.

India was a steady growth market for the automotive industry, but an increase of only three percent to 3.3 million units compared to 8 percent in the previous year has dampened expectations. IHS Markit analysts predict annual sales of over 5 million vehicles by 2023, making India the world’s third largest automotive market. Ford’s decision is just one example of many foreign car companies struggling to gain a foothold in the Indian market. The market leader Maruti Suzuki dominates with 51 percent market share and sells more than 1.7 million vehicles annually. By working with Mahindra, Ford hopes to develop new models faster and cheaper, which is especially important in a price-sensitive market like India. You too can benefit from the growth in India. The export of products there, especially cars and car parts, in many cases requires an obligatory India certification according to the Automotive Industry Standard (AIS). We would be happy to advise you comprehensively on AIS certification for India.

Ford is testing self-driving vehicles in Beijing in cooperation with Baidu

In October of last year, Baidu, which has the leadership of the Apollo consortium, announced its collaboration with Ford on autonomous driving. Just two days later, Volkswagen also announced a partnership with Apollo. The Ford collaboration includes a two-year project to test self-driving cars in Beijing. The vehicles will be tested there for the so-called Level 4 operation. Thus, a largely autonomous driving is described according to the guidelines of the Association of Automotive Engineers. This allows the vehicle to automatically steer, accelerate and brake, to overtake and to independently search for and park a parking space; the driver only has to intervene when requested by the system.

Ford Autonomous Vehicles CEO Sherif Marakby highlighted the importance of working with Baidu for Ford’s future growth and improvement of its own assistance systems. “By partnering with a leading technology company like Baidu, Ford can break new ground in China by offering innovative solutions in terms of safety, ride comfort and mobility. The project marks a milestone in the partnership between Ford and Baidu and underscores Ford’s vision of developing intelligent vehicles in the future”, Mr. Marakby said in a statement.

Ford self-driving cars

Since 2017, the Apollo consortium has partnered with over 130 world-renowned technology companies for its open source autonomous driving project. Among others, Ford is a founding member, other partners are Microsoft, Intel and Nvidia. Through its open source strategy, Apollo hopes to shorten development time for self-driving vehicles and make the technology available to as many companies as possible. The Apollo system supports the driver in much the same way as the Tesla and Waymo systems, using self-learning algorithms, Big Data and Artificial Intelligence. The government in Beijing also supports artificial intelligence (AI) projects. So Baidu was selected last year to take the lead in the development of self-driving cars. Also last year, as first foreign automakers BMW and Daimler were granted permission to field test self-driving vehicles in Shanghai and Beijing. Many companies are already benefiting from growth in China and exporting their products there. Vehicles, components and electronic components must pass the China Compulsory Certification (CCC certification) in China. We advise you on the application and during the approval process.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

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New GB standards for compulsory certification of automotive products

The Chinese Certification and Accreditation Administration (CNCA) announced the implementation of 9 new GB Standards. These standards cover various topics related to automotive products, from different requirements for busses to electric vehicles (see table below).

Products that have already been certified under previous or related standards enjoy a transitional period of one year. During that time the affected companies can convert their certificates to show that their products conform to the new standards.

If the new standards do not require new tests, the certificates can directly be converted. In case a standard requires additional tests, the new certificate will only be issued after completing these Tests.

New GB standards

These new standards will come into effect on June 30th, 2019, by which date the relevant certification bodies and test laboratories will be in compliance and will have implemented them accordingly.

Nr.	Standard Name und Nummer	Zusätzliche Hinweise zur Implementierung
1	GB 19260-2016 Strukturelle Anforderungen für Niederflurbusse und Busse mit niedrigem Einstieg
2	GB 22757.2-2017 Label für Energieverbrauch von leichten Nutzfahrzeugen- Teil 2: Extern aufladbare Hybridfahrzeuge und Elektroautos
3	GB 26149-2017 Leistungsanforderungen und Testmethoden für Reifendruck-Überwachungssysteme für Personenkraftwagen	Article 5.1 Sollte das Gesamtfahrzeug nachweislich die Voraussetzungen erfüllen, müssen die einzelnen Komponenten u.U. nicht separat getestet werden
4	GB 34655-2017 Anforderungen an das Feuerlöschequipment in Bussen
5	GB 34659-2017 Anforderungen und Testmethoden für Spritzschutzsysteme von Fahrzeugen und Anhängern
6	GB 34660-2017 Anforderungen und Testmethoden für die elektromagnetische Verträglichkeit von Straßenfahrzeugen	Ausschließlich Test des Gesamtfahrzeuges Während der festgelegten Übergangsfrist kann entweder dieser Standard oder GB 14023 implementiert werden
7	GB 36220-2018 Sicherheitsanforderungen für Öltransport- und Tankfahrzeuge
8	GB/T 34657.2-2017 Interoperabilitätsprüfung für das konduktive Laden von Elektroautos – Teil 2: Fahrzeuge
9	GB/T 34658-2017 Konformitätstest für Kommunikationsprotokolle zwischen einem externen, konduktivem Ladegerät und dem Batteriemanagementsystem eines Elektrofahrzeuges

You are already active in the Chinese market and want to learn more about how these new regulations affect your business? Please do not hesitate to contact us. We are happy to advise you on the new regulations in detail and individually for your needs. We also offer original versions of the Chinese regulations as well as translations.

Mercedes-Benz plans to increasingly rely on Chinese suppliers

The parent company of Mercedes-Benz, Daimler AG, will increasingly rely on Chinese suppliers in the future and would like to intensify their cooperation. “The Chinese suppliers have a technological lead in the field of electric vehicles and connected driving compared to their competitors from the US and Europe,” says Wilko Stark, Head of Purchasing and Supplier at Mercedes-Benz. “The shift to electric vehicles and connected mobility has made us more dependent on external companies for battery cells and connectivity.” At a press conference in Stuttgart, which dealt with the group’s purchasing strategy, he said: “We will think about cooperation and joint ventures in certain areas. The general importance of alliances and development and purchasing partnerships is becoming increasingly important “.

Auto parts

In research and development, Mercedes-Benz will focus more on the leadership role of suppliers and also optimize internal processes to save costs. China is ahead of the US in many areas of digitalization and innovation in the sector, therefore the group will look for more suppliers in China. In the opinion of Stark, China’s role in the automotive sector will become dramatically more important in light of the increasing number of Chinese companies that supply Mercedes-Benz.

The Stuttgart-based manufacturer of luxury vehicles sold around 674,000 vehicles in China last year, a market that sets new standards in the field of electromobility and digital services. This is also one of the reasons why Chinese suppliers are ahead of their US and European competitors. Mercedes-Benz thus has no choice but to work together with companies such as Alibaba and Tencent in order to keep pace as a car manufacturer in the field of digitalization, said Stark at the press conference.

The Daimler Group is also looking for partners in China in the field of battery cells. In particular, new developments such as lighter batteries with a higher energy density are of interest to the company. Shorter charging times, longer range and lighter weight, as well as a lower price due to high volumes in production and purchasing, would allow Mercedes to offer electric vehicles at comparable costs as internal-combustion engine models. The aim is to work with suppliers who produce components for both conventional and electric vehicles. This will simplify the transition for Mercedes-Benz between these two drive technologies. Your company wants to export products to China as a supplier? Components and electronic components in China must pass the China Compulsory Certification (CCC). We advise you on the application and during the approval process.

Citroen launches on the Indian car market with its own design and low-cost vehicles

The French car manufacturer plans to launch its vehicles before the end of 2021. Citroen’s entry into the Indian market is part of the strategy of the parent company PSA Group to reduce its dependence on sales in Europe, so Peugeot returns to North America and Opel expands to Russia. As part of this strategy, PSA is developing a range of low-cost vehicles for the international market, similar to Renault’s Global Access programme, with affordable models such as the Logan, which is sold under the Dacia or Renault brand depending on the region.

Citroen India

“Citroen’s vehicles for India will be the first in the lower price range,” said CEO Linda Jackson in an interview with Automotive News Europe. “The models must be suitable and interesting for our Indian customers.” Small SUVs like the Renault Kwid are already successful in India, where buyers prefer hatchback or crossover design over a sedan.

Market researchers and analysts of the Indian automotive market think it is possible that Citroen can be successful, but it has to focus on low volume and higher-priced models. To compete on the mass market with the already established brands will not lead to success. Chairman Jackson announced that Citroen would be distinguished by its design, local production, excellent quality and after-sales service.

Citroen’s cars will be produced by two joint ventures founded by PSA and CK Birla Group in 2017. Hindustan Motor Financing Corporation is responsible for assembly and distribution. PSA plans an annual production of around 100,000 vehicles. The other company, PSA Avtec Powertrain, has recently started manufacturing engines and transmissions in a factory near Bangalore with an annual capacity of 300,000 engines and 200,000 transmissions. As part of the joint venture with CK Birla, PSA also secured the trademark rights for the Ambassador limousine. After decades of production, more than half a million Ambassadors, mostly taxis, are on India’s roads. Citroen and PSA are therefore also planning a new edition or reuse of the name Ambassador for their India strategy. Would you like to export your products to India? Automotive products must comply with the Indian Automotive Industry Standard (AIS) and undergo India certification (AIS certification). We will be happy to advise you.

Car sales in China fell for the first time in two decades

After twenty years of booming business, the world’s largest auto market suffers declines. Depending on the calculation, sales fell by 2.8 to 6 percent in 2018 compared to the previous year. One of the reasons is the continuing trade war between China and the US, which led to temporary tariff increases on imported US vehicles, the tariffs were temporarily increased from 25 to 40 percent and were just recently withdrawn in December. In addition, the Chinese economy is weakening in general. The real estate market is under pressure, debt is growing, economic growth is stagnating and there is a lack of consumer confidence, which is so important to car sales. Other experts cite the many driving restrictions and lengthy and difficult vehicle registration procedures for new cars in the cities as the cause. Also, comfortable ride-hailing services were able to attract more passengers, which also dampened demand for cars.

In addition, overcapacities of massively expanded production facilities are threatening the car industry. Due to years of continuous growth and good prospects last year, investments were made in new plants or their expansion. But now in 2019, overcapacity of nearly five million vehicles or idle plants of 19 percent are threatening, according to the expert Ferdinand Dudenhöffer from CAR Center Automotive Research at the University of Duisburg-Essen. The Chinese government is trying to counteract the situation and announced new regulations. For gasoline cars no new factories may be built or relocated to other provinces.

Car sales in China

For the German automakers also break harder times. In China, the most important market for the Volkswagen Group, sales fell by 9.8 percent to 274,100 vehicles. Only the VW subsidiary Audi posted a plus of 5.4 percent in deliveries. The other German premium brands such as Daimler and BMW were also able to sell more cars. Mercedes was able to grow by just under four percent, BMW is suspected similar but there were no figures published. Among the Chinese manufacturers especially Geely stood out, which are also major shareholder at Daimler, and could announce an increase of 20 percent. However, Geely as well as the industry association CAAM expects a stagnation for 2019. Nevertheless, there is still a positive environment in the area of vehicles and automotive, especially in the premium segment. Do you want to export your products to China? You might need the compulsory China Compulsory Certification (CCC), for which we would be pleased to advise you.

Brose opens new plant in China and further expands its manufacturing expertise

The automotive supplier Brose has opened a new plant in Taicang, China, in the northeast of the country near the metropolis of Shanghai. The German family-owned company based in Coburg, Bavaria, plans to produce door systems, seat structures and electric motors for the Chinese market at the new location. Production began in Taicang in 2015 on a smaller scale in rented production halls accompanied by continuous growth towards a complete production facility, which will grow to a total area of 73,000 square meters in a second construction phase at the end of 2019. Upon completion, the new plant, in which the company is investing 180 million euros, will become Brose’s largest manufacturing facility in Asia.

As a special feature, a new, digitized control system will monitor the production process. It analyzes data from production and is thus intended to increase product quality and minimize rejects. According to Thomas Spangler, Managing Director Technology, the digitized processes and the latest manufacturing methods will significantly increase Brose’s manufacturing competence in Asia. After the start of operations and with full capacity utilization, up to 1,600 employees are expected to be employed at the Taicang site by 2024.

Brose China

Brose is located on 4 continents worldwide, including the Asian countries of India, Thailand, Japan and South Korea. Brose has been represented in China since 1996 and has greatly expanded its local activities since then. Today, the automotive supplier operates eleven locations in China and mainly offers products for the domestic Chinese market. According to the company, Brose China employs a total of 6,600 people and generated sales of more than 1.1 billion euros in 2017. The Chinese market for car manufacturers and suppliers is growing and may also be interesting for you! Would you like to export your products there? You need the obligatory China Compulsory Certification (CCC), for which we would be happy to advise you.

Daimler reports good sales figures for its truck division

According to a preliminary estimate, the exact figures will be published in February, the Daimler Group in 2018 could deliver more than half a million trucks worldwide to its customers. The number marks the peak of the past ten years in the company’s history and is mainly due to good business in America and Asia. But sales in Germany and Europe were also up, with sales for these two regions totaling four percent at the end of November. The growth rates in the major markets of North America and Asia were significantly higher, with double-digit growth rates. In 2017, Daimler Trucks’ revenue was around 35.7 billion euros, and according to the company, there will be a significant increase in 2018.

Daimler sells more trucks

Truck divison head Martin Daum announced an estimate based on preliminary figures and reported an 11 percent increase in sales for the period ending November 2018 compared to last year. By contrast, there was a decline in China, the largest market for commercial vehicles. Daimler produces trucks there under the Foton Auman brand in a joint venture with Foton Motor. In 2017 an initiative by the Chinese government which has renewed its vehicle fleet, resulted in extraordinarily high sales of 112,000 units. The Beijing Foton Daimler Automotive (BFDA) produces Mercedes-Benz engines under license for the local assembly of Auman trucks, the company is known for advanced technology in the commercial vehicle sector. Thus, the straight-six engine meets the emission standards Euro 4 and 5 and in 2016 the Auman EST was presented as a premium product with standard equipped air suspension, telematics and ASR. Take advantage of your opportunity in the segment of commercial vehicles in China. For the export to China, automotive products as well as other industries require the compulsory China Compulsory Certification (CCC), for which we are pleased to advise you.

Jaguar Land Rover causes high loss for owner Tata Motors

Tata Motors’ shares lost 30 percent on Friday, February 8, after announcing $3.8 billion loss in the previous quarter and the largest ever loss in the Indian economy, due solely to the bad business of the subsidiary and brand Jaguar Land Rover. The British carmaker accounts for the largest share of Tata’s $11 billion in revenue. The financial damage to Tata was around $4 billion, while the value of Jaguar Land Rover dropped to $7.8 billion. Tata Motors took over the traditional British manufacturer from Ford for $2.3 billion in 2008. The Indian company’s core business generated a profit of around $87 million in the last quarter of 2018, selling off half a million vehicles last year.

Jaguar Land Rover India

Jaguar Land Rover is under tremendous pressure on several fronts. Sales in China, the world’s largest car market, fell 40 percent in January compared to the previous year. The Chinese automobile market was hit hardest by the ongoing US trade dispute. For the first time in two decades this caused declining sales of new cars. CEO Ralf Speth announced that he would work more closely with the Chinese car dealers to respond to the changed market situation. Nevertheless, the business results are influenced by the adverse circumstances in China, Speth said.

In its home country Britain Jaguar Land Rover is feeling the collapse of the diesel vehicle market as a result of the Volkswagen diesel scandal. There are also declines in sales and investment due to the unclear conditions of Britain’s exit from the European Union, which accounts for more than 50 percent of English vehicle exports. The kingdom’s auto industry warned of devastating and lasting repercussions last week if the UK left the EU on 29 March without prior trade agreements. Production at Jaguar Land Rover declined by 16 percent respectively around 450,000 vehicles last year. As part of a $3.2 billion austerity program, more than 6,000 jobs had to be cut and 1,000 English employees switched to short-time working on a 3-day week. However, it should not be forgotten that the Indian auto market is currently the largest global market after China, with growth of 5.3 per cent and around 3.4 million vehicles sold in 2017. Benefit from the growth in India. The export of products there, especially cars and car parts, in many cases requires a mandatory India certification to the Automotive Industry Standard (AIS). We advise you gladly and comprehensively with the AIS certification for India.