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The National Development and Reform Commission and Ministry of Industry and Information Technology officially issue the Management Regulations on Newly Established Battery Electric Passenger Vehicle Enterprises.

On June 4, the National Development and Reform Commission and the Ministry of Industry and Information Technology of China jointly issued the Provisions on the Administration of Newly Established Pure Electric Passenger Vehicle Enterprises, which was put into effect as from July 10. Then the aggregate investment for the projects of newly established enterprises and production scale will not be affected by the minimum limitas stipulated in the Automobile Industry Development Policy, but determined by the investor himself.

The provisions explicitly stated that the pure electric passenger vehicle manufactured by the newly-established enterprise should use the registered trademark and brand owned by the enterprisesince the product, pure electric passenger vehicle, has a complete research and development process: from concept design, system and structure design to sample vehicle research and manufacture, experiment and the final shape determination. Meanwhile, the newly-established enterprise should set up a management systemconforming to its production to ensure that the actual products are in conformity with those listed in theVehicle Production Enterprises and Product Announcements.

The so-called “pure electric passenger vehicles” in the provisions include the pure electric vehicles andextended range electric vehicles (a mixed power vehicle in series connection and having a function of charging externally.). The newly-established enterprise can produce the pure electric passenger vehiclebut cannot produce any vehicle powered by the internal combustion engine.

Provisions on the Administration of Newly Established Pure Electric Passenger Vehicle Enterprises

Chapter 1 General Provisions

Article 1 In order to promote the development of new energy vehicle industry, play the role of the subject market, and support social capitals and enterprises with technological innovation abilities to participate in scientific research and production of the pure electric passenger vehicles, and in accordance with theAdministrative Licensing Law of the People's Republic of China, the Administrative Measures for the Government Confirmation of Investment Projects, Automobile Industry Development Policy and other relevant laws, rules and regulations, we hereby formulate this provisions.

Article 2 This provisions shall apply to the newly-established enterprises as an independent legal person within Chinese territory to produce pure electric passenger vehicles (hereinafter referred to as newly-established enterprise/enterprises”).

Article 3 The so-called pure electric passenger vehicles” in this provisions include the pure electricvehicles and extended range electric vehicles (a mixed power vehicle in series connection and having a function of charging externally.). They refer to the vehicles as defined in the clauses and the national standard gb/t19596-2004Terminology of Electric Vehicles respectively. “Passenger vehicles”contain sedans and other passenger vehicles, referring to the self-made entire vehicles (including chassis) and as defined from clause to clause in the national standard gb/t3730.1-2001Motor vehicles and trailers-Types-Terms and definitions.

Article 4 The National Development and Reform Commission and the Ministry of Industry and Information Technology of China shall be responsible for the supervision and management on the investment projects of newly-established enterprises, vehicle manufacture enterprises and their products access within their respective function ranges.

Chapter 2 Investment Management

Article 5 As for the investment projects of newly-established enterprises, the relevant provisions as stipulated in the Notice of the State Council on Issuing the Catalogue of Investment Projects Subject to Government Confirmation (2014)(No.53 document issued by the NDRC in 2004) and Automobile IndustryDevelopment Policy shall be implemented.

Article 6 The aggregate investment for the projects of newly established enterprises and production scale shall not be affected by the minimum limit as stipulated in the Automobile Industry Development Policy,but determined by the investor himself.

The newly-established enterprises can manufacture the pure electric passenger vehicles, but excludingany vehicles powered by the internal combustion engine.

Article 7 The subject investors of the newly-established enterprises shall compile project application reporin accordance with the relevant requirements as stipulated in the Administrative Measures for the Government Confirmation of Investment Projects, and provide the National Development and ReformCommission with company profile, basic ability, statements and evidentiary materials (See Annex 1.) for thetrial-produced sample vehicleof the project applying enterprises .

Article 8 The subject investor of the newly-established enterprise shall have the following basic conditions:

(1He/She must register his/her enterprise in China, and possess his/her own capital scale and financing ability corresponding to the project invested.

(2) He/She shall have the complete experience of research and development on the pure electric passenger vehicles: from concept design, system and structure design to sample vehicle research and manufacture, experiment and the final shape determination. And he/she must have a professional R&D team and the ability to positively develop the whole vehicle, mastering core technologies about vehicle control system, power battery system, vehicle integration and light-weighting, etc., and possessing independentintellectual property rights and authorized invention patent on pure electric passenger vehicles.

(3) He/She shall have the ability to trial-produce the whole vehicle, and have conditions to trial-produce the complete pure electric passenger vehicle samples, including the main trial-production process and equipment such as vehicle body and chassis manufacturing, power battery system integration, and wholevehicle assembly.

(4) He/she must trial-produce at least 15 pure electric passenger vehicles of the same type, and provide survey reports issued by the national accredited testing institutions, ensuring they meet the prescribedtechnical requirements (See Annex terms of security, reliability, performance, vehicle light-weighting,and economy, etc. under the prerequisite of according with the national standards and related standards onelectric vehicles.

Article 9 The application report for investment projects of the newly-established enterprises shall include the following contents:

(1The enterprise has its research and development institutions which possess the ability to positivelydevelop whole pure electric passenger vehicles. At least the enterprise has the ability to design and develop such key technologies as matching of vehicle and its power system, vehicle management system, vehicle energy management system, vehicle light-weightingand vehicle safety, etc., as well as the ability to test and experiment the vehicle and monitor its running state.

(2) The enterprise has the whole vehicle production technology and equipment for vehicle body molding, coating and assembly, etc. adapted to its production program and product structure, and has the ability to produce key parts such as power battery system assembly and the ability to ensure consistency.

(3) The enterprise has its sales business of the pure electric passenger vehicles and after-sales service system.

(4) The newly-established enterprise should have commitments and measures to protect the consumer’srights and interests, and provide guaranty enterprises and guaranty contracts with its notarized guarantee period of not less than 5 years (as from the date when the project is completed and put into operation).

Article 10 The National Development and Reform Commission shall examine the investment projects of the newly-established enterprises in accordance with the Administrative Measures for the Government Confirmation of Investment Projects, and solicit opinions from the Ministry of Industry and InformationTechnology of China.

Article 11 The National Development and Reform Commission shall organize experts to assess theinvestment projects application of newly-established enterprises. The experts in the field of pure electric passenger vehicles shall form the investment project review committee to examine the authenticity and compliance of Annex 1 and Annex 2 provided by the project applying enterprise, and issue review opinions within 30 working days.

The National Development and Reform Commission and the Ministry of Industry and InformationTechnology shall be responsible for building the expert bank in the industry of pure electric passengervehicles.

Chapter 3 Access Administration

Article 12 After accomplishment of the investment projects, the newly-established enterprises and theirproducts shall comply with the relevant requirements as stipulated in the Regulations on Passenger Vehicles Production Enterprises and Products Access Management enacted by the Ministry of Industry andInformation Technology. After passing the examination, the enterprises shall list the information in the Vehicle Production Enterprises and Product Announcements and manage it as per a separate category.

Article 13 The pure electric passenger vehicle products manufactured by the newly-establishedenterprise shall use the registered trademark and brand owned by the enterprise, and conform to the relevant requirements on passenger vehicles, electric vehicles as stipulated in the national and industry standards. Itspower battery unit and system shall be the products manufactured by the enterprise which meets the specifications of auto power battery industry. The newly-established enterprise shall submit its qualitywarranty commitment for such key parts as the battery, motor, electric control system of the pure electric passenger vehicle, and the commitment content shall conform to the relevant provisions about spreading and applying the new energy vehicles initiated by the state.

Article 14 The pure electric passenger vehicle products of the newly-established enterprise shall be valid for 3 years since its listing in the Vehicle Production Enterprises and Product Announcements, and applicationcan be raised for extension 30 days prior to its expiration. After the examination has been passed, the validity can be extended, and each time the extended period shall not be more than 3 years.

Article 15 The newly-established enterprise shall establish a management system corresponding to itsproduction to ensure that the actual products conform to those listed in the Vehicle Production Enterprises and Product Announcements. As for the products that haven’t been approved to produce or do not conform to the product standards, they shall be handled in accordance with the relevant provisions stipulated in theLaw of the People’s Republic of China on Road Traffic Safety and the Supervision and Management Measures on Vehicle Manufacture Enterprises and Products Consistency enacted by the Ministry of Industryand Information Technology of China.

Article 16 The Ministry of Industry and Information Technology shall develop evaluation on the newly-established enterprise in terms of commitment fulfillment, after-sales service guaranty, product safety and consistency, etc., and make the evaluation results to the public.

Article 17 The Ministry of Industry and Information Technology shall spot check the access conditionmaintenance of the newly-established enterprise. If the enterprise cannot keep the relevant conditions forproduction access or has been bankrupt, the Ministry of Industry and Information Technology shall repeal, cancel or suspend its vehicle Production Enterprises and Product Announcements in accordance with laws. During the suspension period, the enterprise shall not handle the formalities for name alteration and change, and address relocation, etc.

Chapter 4 Supplementary Provisions

Article 18 The supervision and legal responsibility of the investment projects of the newly-established enterprise shall be performed in accordance with the relevant provisions of the state laws and regulations, as well as the Administrative Measures for the Government Confirmation of Investment Projects

Article 19 The National Development and Reform Commission and the Ministry of Industry and Information Technology of China provisions shall be responsible for the interpretation of this provisions.

Article 20 This provisions shall enter into force as from July 10, 2015.