Update on the Replacement of Power Batteries for Old New Energy Urban Buses in China

TapTechNews August 21st news, according to the information released on the official account of Ministry of Industry and Information Technology Bulletin today. In order to implement the requirements of the Notice of the State Council on Issuing the <Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in for New>, the Ministry of Industry and Information Technology, the Ministry of Transport, the Ministry of Public Security, the Ministry of Commerce, the Emergency Management Department, the State Administration for Market Regulation, the National Financial Regulatory Administration, the National Fire Rescue Bureau and other eight departments jointly released an announcement recently, deploying the work of safely and orderly replacing the power batteries of old new energy urban public transport vehicles to serve the safe and convenient travel of the people.

The announcement clearly states that the power battery replacement work of new energy urban public transport vehicles should be implemented under the premise of ensuring the safety of the entire vehicle. The operating enterprises of new energy urban public transport vehicles and the power battery replacement service providers should have legal personality and follow the principle of whoever advocates, whoever is responsible; whoever replaces, whoever is responsible, and strictly implement the main responsibility for safety.

First, the power battery replacement work of new energy urban public transport vehicles should be implemented under the premise of ensuring the safety of the entire vehicle. The operating enterprises of new energy urban public transport vehicles and the power battery replacement service providers should have legal personality and follow the principle of whoever advocates, whoever is responsible; whoever replaces, whoever is responsible, and strictly implement the main responsibility for safety.

Second, the performance of the power battery used for replacement should meet the mandatory national standard requirements of GB38031 Safety Requirements for Power Batteries for Electric Vehicles, and it is recommended to meet the requirements of recommended national standards such as GB/T31484 Requirements and Test Methods for Cycle Life of Power Batteries for Electric Vehicles and GB/T31486 Electrical Performance Requirements and Test Methods for Power Batteries for Electric Vehicles. The waste power batteries generated by the replacement should be transferred to recycling service outlets and other channels, and the relevant entities should upload traceability information in accordance with relevant regulations.

Third, the performance of the entire vehicle after replacing the power battery should meet the mandatory national standard requirements such as GB7258 Technical Conditions for the Operation Safety of Motor Vehicles, GB38900 Items and Methods of Inspection for the Safety Technology of Motor Vehicles, GB1589 Dimensions, Axle Loads and Mass Limits of Automobiles, Trailers and Automobile Trains, GB18384 Safety Requirements for Electric Vehicles, and GB38032 Safety Requirements for Electric Buses.

Fourth, the work of annual inspection, safety management, defect recall, accident investigation, and scrap recycling of vehicles that have replaced the power battery shall be organized and carried out in accordance with laws and regulations such as the Road Traffic Safety Law of the People's Republic of China, Work Safety Law of the People's Republic of China, Regulations on the Recall of Defective Automobile Products, Regulations on the Reporting and Investigation of Production Safety Accidents, Regulations on the Investigation of Fire Accidents, and Administrative Measures for the Recycling of Scrapped Motor Vehicles.

Fifth, after the occurrence of an accident for a vehicle that has replaced the power battery, its insurance claim settlement work shall be organized and carried out in accordance with laws and regulations such as the Insurance Law of the People's Republic of China and Regulations on Compulsory Liability Insurance for Motor Vehicle Traffic Accidents and the vehicle insurance contract agreement.

TapTechNews noticed that the Ministry of Transport and the Ministry of Finance issued the Detailed Rules for the Implementation of Subsidies for New Energy Urban Buses and Power Battery Updates on July 29, which gives a fixed subsidy to urban public transport enterprises for renewing new energy urban buses and replacing power batteries.

The subsidy funds support the renewal of urban buses with a vehicle age of 8 years and above, that is, urban buses registered before (including on) December 31, 2016. Each vehicle is subsidized by an average of 60,000 yuan ($8,571.43). Among them, for the renewal of new energy urban buses, each vehicle is subsidized by an average of 80,000 yuan ($11,428.57); for the replacement of power batteries, each vehicle is subsidized by 42,000 yuan ($6,000). Each region formulates its local subsidy standard according to the subsidy funds arranged and the performance goals issued by the Ministry of Finance and the Ministry of Transport.

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