Zone's new policy saves time and money

Auto manufacturers registered in Shanghai's free trade zone and those making vehicles in the zone will be allowed to manufacture new types of vehicles immediately after they complete type testing.

A memorandum signed by the China Quality Certification Center, the Shanghai Market Supervision and Administration Bureau and the China (Shanghai) Pilot Free Trade Zone Administrative Committee on Tuesday proposes reshaping the vehicle certification process.

In line with the new policy, a zone-based car manufacturer will receive a manufacturing permit after it completes vehicle type testing. 

The general process of certification is to test the new type first, and then examine the factory after the test is qualified, and then issue the certificate after the exam is proved qualified.

The new policy is conducive to shortening the time for carmakers to become certified and accelerate the launch of new models.

On January 7, Tesla founder Elon Musk arrived in Lingang to break ground for the company’s first overseas Gigafactory, which is the largest foreign-funded manufacturing project yet built in Shanghai.

The Tesla Shanghai Gigafactory integrates R&D, manufacturing, sales and other functions, and its annual production capacity is expected to reach 500,000 pure electric vehicles.

Issuing certificates first and then reviewing production will greatly save time and money for Tesla and other carmakers and may attract more automobile manufacturers to launch their production in the Shanghai free trade zone.

The reform is also expected to expand to automotive parts manufacturers to create the advantages of economies of scale.