Hattori EtsuoChief RepresentativeToyota Motor Corporation, China Office
Ladeis and Gentlemen,Good afternoon
I am Etsuo Hattori, the chief representative of the Toyota Motor Company China Office.
Although we have 3 topics to discuss today, because time is limited, I will focus on the development of energy-saving and green vehicles, instead of the development of national branding and the development of the automobile spare parts industry in China.
In Japan 50% of primary energy comes from crude oil, whereas in China, 62% of primary energy comes from coal.
But the dependence on crude oil in China has risen from 18% in the year 1996 to 24% in 2004.
All of the primary energy in Japan is imported, so energy security is one of the most important problems. After China became a crude oil net importer in 1993, imports have reached one hundred and twenty million tons in 2004, the percentage imported is now 44%, a rapid increase.
For China, which is developing rapidly on the basis of secondary industries, balancing the crude oil supplement and consumption has become an important problem in the aim of sustaining development.
Compared with the 2 million in 2000, the sales volume of automobiles in China in 2004 had outstripped 5 million, a very rapid growth indeed.
China was estimated to have 28 million automobiles on the road in 2004, compared to 16.09 million in 2000.
The amount of gasoline consumption by automobiles represents 86% of total production, whereas the amount of diesel consumption represents 23% of total production.
In short, decreasing fuel consumption has become a key point for the development of the China automobile market.
On the other hand, air pollution in China came mainly from the smoke of factories and houses. In recent years, although the tendency of emissions of sulphur dioxide and dust is decreasing, automobile emissions are increasing seriously, especially in the cities.
It is reported that within the pollution measured in Shanghai, the ratio of automobile emissions is CO:87%, HC:97%, NOx:74%.
In order to protect people's life and health, purifying automobile emissions has become a vital issue for automobile manufactures.
Energy-saving and decreasing emissions have become the most important issues for the development of the China automobile industry. I'd like to introduce some incentive policies in Japan, the U.S. and the EU.
In order to improve the popularization of eco-cars, Japan, the U.S. and the EU have implemented various policies to real effect.
As the screen shows, according to the analysts of the policies in each country, the policy targets can be divided into two categories: automobile manufacturers and consumers, and the policies can be divided into restrictive regulations, tax increases and decreases, and allowances.
Let's look at the cases from the US, Japan, and the EU, we can see that they have all implemented appropriate and effective policies.
There are two characteristic among the policies implemented in Japan, the US and the EU:
one is combining the restrictive policies at production stage with incentive policies at the consumption/ usage stage effectively and appropriately.
another is not persisting in balancing budgets when they implemented those policies.
Of course, a few policies focused on budget balance, but most countries and local governments implemented incentive tax policies and allowances through supplementary budgets.
Next is a typical incentive tax policy for eco-cars in Japan.
Let's have a look at the result of the Green Tax Policy.
As the column shows, from year 2001 to 2003, we can see that the output of vehicles enjoying preferential tax policies increased every year.
And even although the preferential tax policy in 2003 became stricter, the output kept increasing.
Because the Green Tax Policy started in 2001, the output in 2000 is calculated based on the level of 2001.
Taking everything into consideration, the Chinese government should restrain the production of high fuel consumption vehicles and critical vehicle exhaust emissions by formulating restrictive regulations and high tax policies, and should improve eco-car popularization by formulating an incentive tax policy to solve the two problems of energy-saving and decreasing emissions in China.
Thank you very much!