What does the automaker credit system mean?

[VonBarrett]

Credit system management refers to the application of a credit system to personnel management, where credits are used to measure an individual's self-worth, reflect and evaluate their overall performance. Various material benefits and welfare are then linked to these credits, with a preference given to high-scoring individuals, thereby motivating people's initiative and fully mobilizing their enthusiasm. Below is an introduction to the credit system: 1. Advantages: It is conducive to the transformation and upgrading of the automotive industry, the development of core technologies, and benefits automotive mobility services. 2. Disadvantages: Implementation can be challenging, and there is a potential for electric vehicle dumping phenomena.

[SanCooper]

I first noticed the automaker credit system at the auto show late last year, where several salespeople kept mentioning credit pressure. To put it bluntly, it's the government's new energy KPI for automakers—they must produce a certain proportion of new energy vehicles each year to earn credits. If they sell too many fuel-powered cars and fall short on credits, they either have to spend big money buying credits from major players like Tesla and BYD or face direct fines. Now, the promotional tactics at 4S stores have changed—salespeople are aggressively pushing hybrid and pure electric models. It's said that selling one more new energy vehicle can cover the credit gap of several fuel-powered cars. This policy has really left many brands with no way out—just look at how those joint-venture brands started transforming last year.

[ORyder]

Last year when our neighbor Lao Zhang bought an electric sedan, I researched this credit system. Essentially, it's the government's environmental assessment for automakers - each manufacturer must meet a minimum annual sales percentage of new energy vehicles to qualify. For example, if a brand sells 100,000 vehicles this year, at least 15,000 must be new energy models to meet requirements. Non-compliant manufacturers either spend hundreds of millions to buy surplus credits from Tesla or face fines. The most interesting part is how even traditional gasoline models are now bundled - you have to purchase an electric vehicle when buying a Highlander. Automakers are really racking their brains to accumulate these credits.

[RemingtonDella]

I find the automaker credit system quite interesting. The government uses economic leverage to encourage manufacturers to adjust their production structure: producing more new energy vehicles earns positive credits, while making too many fuel-powered vehicles results in negative credits. Last year, the price per credit surged from a few hundred to two or three thousand yuan, and reportedly, a German brand spent over a billion yuan buying credits to stay afloat. This system also benefits consumers, as discounts on new energy vehicles are particularly hefty now—manufacturers are willing to sell at a loss just to secure credits. The biggest winners are the new automakers, who can make easy money just by selling credits.