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Volkswagen plans investment in Chinese battery manufacturer

The completion of the share purchase would be Volkswagen’s first direct investment in a Chinese manufacturer of vehicle batteries and is in line with the Group’s strategy of selling 1.5 million vehicles with alternative drive systems in China by 2025. VW, the leading foreign car manufacturer in China, plans to acquire the stake via a private share placement on the Shenzhen stock exchange. Based on Guoxuan’s market value of 2.8 billion US dollars, a 20 percent stake is worth approximately 560 million US dollars. The details of the investment have been finalized over the past two weeks and the companies are now awaiting approval from the Chinese regulatory authorities. After a successful share purchase, Volkswagen would be the second largest shareholder after the 25 percent of Zhuhai Guoxuan Trading Ltd, a company owned by the founder Li Zhen.

batteries
Guoxuan is one of several medium-sized companies of Chinese battery manufacturers after the market leaders CATL and BYD. It is based in the eastern Chinese city of Hefei, where Volkswagen already produces electric vehicles with its joint venture partner JAC Motor. According to unconfirmed sources, Volkswagen has been looking for a battery manufacturer as a partner for some time to gain more control over its supply chain. Volkswagen’s long-term plan to build around 26 million electric vehicles by 2029 will require more than the current global production of vehicle batteries.

To meet its sales targets for alternative and new drive (NEV) vehicles, consisting of plug-in hybrids and electric vehicles, Volkswagen and its partner SAIC Motor recently built a new 2.5 billion US dollar plant. The new plant will produce 300,000 vehicles a year. Furthermore, the capacity of a production facility in Foshan in south-east China has been expanded, where VW and the FAW Group manufacture electric vehicles. In addition to its stake in Guoxan, Volkswagen has appointed CATL as a strategically important supplier, and Volkswagen Supervisory Board member Stefan Sommer told Reuters last July that his company would also set up its own factories for the production of batteries in China if necessary. Does your company want to export its products to China? Then in many cases they will need certification in accordance with the CCC (China Compulsory Certificate) guidelines. We would be pleased to advise you and carry out the CCC certification for your company.

For more information on how CCC certification, the CCC Self-Declaration and voluntary CCAP or CQC certification may affect your company, or for more information about CCC-certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly hier on Amazon.

Here you can download our brochure about the CCC Self-Declaration.

Here you can download our brochure about the voluntary CCAP or CQC certification.

CNCA publishes updated CCC product certification catalogue

In their announcement no. 18 from 2020 the CNCA published a revised list of compulsory product certification, dividing the 103 products in 17 categories. With the new announcement the description and definition form of the compulsory product certification catalogue as published in announcement No. 45 of 2014 is consequently eliminated.

News CNCA No. 18

The table shows which certification mode (A or B) is applying to each product category of the CCC Self- Declaration. While single asterisk (*) marked products are products that implement self-declaration program A (optional laboratory type test + self-declaration), double asterisk (**) marked products are self-declaration program B (designated laboratory type test + self-declaration).

For all other product categories CCC self-declaration is not possible, but the common CCC certification method applies as described in the respective implementation rules.

The compulsory product certification catalogue:

1. Wire and Cable (3) 1. Wire assembly(0101)
2. Rubber insulated wire and cable with rated voltage of 450/750 and below(0104)
3. Polyvinyl chloride insulated wire and cable with rated voltage 450/750 and below(0105)
2. Circuit switch and electrical device for protection or connection (5) 4. Plug and socket (Household and similar uses) (0201)
5. Switches for household and similar fixed-electrical installations(0202)
6. Appliance coupler(0204)
7. Boxes and enclosures for electrical accessories for household and similar fixed electrical installations(0206)
**8. Fuse Link(0205, 0207)
3. Low-voltage apparatus (2) **9. Low-voltage switchgear assemblies(0301)
**10. Low voltage components(0302、0303、0304、0305、0306、0307、0308、0309)
4. Low power motor (1) **11. Low power motor(0401)
5. Electrical tools (3) *12. Electric drill(0501)
*13. Electric grinder(0503)
*14. Electric hammer(0506)
6. Electric welder (4) *15. DC arc welder(0603)
*16. TIG arc welder(0604)
*17. MIG/MAG arc welder(0605)
*18. Plasma arc cutting machine(0607)
7. Equipment for Household and similar uses (19) 19. Household refrigerators and food freezers(0701)
20. Electric fan(0702)
21. Air conditioner(0703)
**22. Motor-compressor(0704)
23. Household electric washing machine (0705)
24. Water heater(0706)
25. Indoor heater(0707)
26. Vacuum cleaner(0708)
27. Skin and hair care appliances(0709)
28. Electric iron(0710)
29. Induction cooker(0711)
30. Electric oven (portable grill, bread toaster and similar cooking utensils) (0712)
31. Electric food processing equipment (food processing machine (kitchen machinery)) (0713)
32. Microwave oven(0714)
33. Electric cooktops, cooktops, ovens and similar appliances (standing electric ovens, stationary grills and similar cooking appliances) (0715)
34. Extractor hood(0716)
35. Liquid heater, hot and cold water dispenser(0717)
36. Rice cooker(0718)
37. Electric blanket, Electric heating pad and similar flexible heating appliances(0719)
8. Electronic products and safety accessories (18) 38. Single and multi-speaker active speakers with total output power below 500W (Effective values) (0801)
39. Audio power amplifier(0802)
40. Audio and video recording and playback equipment in various types of carriers (including various types of discs, tapes, hard disks, etc.) (0805, 0812)
41. Color TV receivers and TV set-top boxes for various imaging methods(0813)
42. Electronic organ(0813)
43. Microcomputer(0901)
44. Laptop(0902)
45. Display device for use with a computer(0903)
46. Printing equipment connected to a computer(0904)
47. Multi-purpose ALL-IN-ONE pinter(0905)
48. Scanner(0906)
49. Server(0911)
50. Fax(1602)
51. Cordless telephone terminal(1604)
52. Mobile user terminal(1606)
53. Data terminal (1608)
54. Multimedia terminal (1609)
55. Power supply (0807, 0907)
9. Lighting appliances (2) 56. Lamp (1001)
57. Ballast(1002)
10. Motor vehicle and safety accessories (13) 58. Automobiles(1101)
59. Motorcycle(1102)
60. Electric bicycle(1119)
61. Motor vehicle tires(1201,1202)
62.Motorcycle occupant helmet(1105)
63. Brake lining for automobile (1120) (implemented from June 1, 2020)
**64. Car safety glass(1301)
**65. Car seat belt(1104)
**66. Motor vehicle exterior lighting and light signal devices(1109, 1116)
** 67. Motor vehicle indirect vision device(1110, 1115)
**68. Car seat and seat headrest(1114)
**69. Car drive recorder(1117)
**70. Car reflecting marking(1118)
11. Agricultural machinery products (2) 71. Plant protection machinery(1401)
72. Wheel tractor(1402)
12. Fire products (3) 73. Fire alarm products(1801)
74. Fire extinguisher(1810)
75. Refuge escape products(1815)
13. Security and protection products (2) 76. Intrusion detector(1901)
77. Anti-theft alarm controller(1902)
14. Building materials products (3) 78. Solvent-based wood coating(2101)
79. Porcelain tile(2102)
80. Building safety glass(1302)
15. Children’s products (3) 81. Baby carriage products(2201)
82. Electric toy products(2202)
83. Motor vehicle child occupant restraint system(2207)
16. Explosion-proof electrical (17) 84. Explosion-proof motors(2301)
85. Explosion-proof electric pump(2302)
86. Explosion-proof power distribution equipment(2303)
87. Explosion-proof switch, control and protection products(2304)
88. Explosion-proof starter products(2305)
89. Explosion-proof transformer products(2306)
90. Explosion-proof electric actuators, solenoid valves(2307)
91. Explosion-proof plug-in device(2308)
92. Explosion-proof monitoring products(2309)
93. Explosion-proof communication and signaling device(2310)
94. Explosion-proof air conditioning, ventilation equipment(2311)
95. Explosion-proof electric heating products(2312)
96. Explosion-proof accessories, Ex components(2313)
97. Explosion-proof instrumentation products(2314)
98. Explosion-proof sensor(2315)
99. Safety barrier products(2316)
100. Explosion-proof instrument box products(2317)
17. Household gas appliances (3) 101. Household gas cooker(2401)
102. Domestic gas fast water heater(2402)
103. Gas heating water heater(2403)

For more information on how CCC certification, the CCC Self-Declaration and voluntary CCAP or CQC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly hier on Amazon.

Here you can download our brochure about the CCC Self-Declaration.

Here you can download our brochure about the voluntary CCAP or CQC certification.

Korea Certification (KC) is gaining importance due to estimated growth of South Korean electric vehicle market

electric vehicles

The government of South Korea announced that it plans to secure a 10 percent share of the global market for electric vehicles by 2023. The emerging segment of electric vehicles is an important factor for the domestic automotive industry and contributes to the reduction of pollutant emissions and greenhouse gases. Analysts expect the market for electric vehicles to grow by more than 19 percent between 2019 and 2025. Korean companies are already investing a considerable amount of money in the development of new and innovative technologies in the automotive sector. Hyundai has announced that it will invest 86.4 million US dollars worldwide by 2025 in future-oriented mobility concepts. Other companies contributing to the growth of the South Korean electric vehicle market include BMW AG, Audi AG, Ford Motors Co., Tesla Inc. and Volkswagen.

The government is also supporting the industry with subsidies of 1.8 billion US dollars. Further subsidies totaling 609 million US dollars have been promised for battery-powered electric vehicles and the development of an infrastructure with charging stations in 2020. The subsidies are paid to companies that are actively involved in the electric vehicle segment. The leaders in terms of innovation and market share are BMW AG, General Motors Co. and Hyundai Motor Co.
The market for electric vehicles can be broken down into vehicle types, drive technology and the type of battery. Vehicle types are commercial vehicles, passenger cars and two-wheeled vehicles, and a distinction is made between purely electric vehicles and plug-in hybrid vehicles. NiMH and Li-ion batteries are suitable for the design of the corresponding batteries. Due to the higher energy density and general acceptance, Li-ion batteries will be in greater demand. The automotive industry in South Korea has a high level of manufacturing expertise and, measured by production figures, ranks sixth in the world and fifth in terms of vehicle exports. At present, Hyundai in particular can supply the domestic market with its electric vehicles such as the Ioniq or Kona. General Motors Korea, formerly Daewoo Motor, also has an electric vehicle on offer in the form of the Chevrolet Bolt which is imported. Other well-known vehicle manufacturers who export their models to South Korea also offer cars with alternative drive systems. A KC Korea certificate is mandatory for the import of automotive components. A distinction is made between spare parts and complete vehicles. We would be pleased to advise you regarding Korea certification and the corresponding KC mark.
If you need assistance with your KC Certification or have any questions, please feel free to contact us any time. Call us directly: EU: +49-69-2713769150, UK: +44-2071931135 or send us an email.
 

Compulsory CCC certification for brake linings from June 1, 2021

With the announcement number 19/2020, the state market regulatory authority SAMR announced that CCC for brake linings of motor vehicles will be mandatory starting June 1, 2021. Up until now, these products could be imported to China by using a product licensing process. After this date, brake lining products without CCC can no longer be imported or sold in China.

As of June 1, 2020, applications for product licensing will no longer be accepted, but applications for CCC certification can be submitted to the relevant Chinese authorities.

The applicable standard for brake linings is GB 5763-2018 which became effective on October 1, 2019.

Brake pads

Manufacturers currently in possession of valid Chinese product licenses and no longer importing brake linings to China after June 1, 2021 will not need to apply for the CCC certification.

The CCC certification for brake linings includes application with supporting documentation, product tests and a factory inspection/audit. Test reports, inspection reports or other documents previously obtained during the product licensing process can be checked by the certifying authority and may be acknowledged where applicable.

The CCC certification is significantly more extensive and time-consuming than the product licensing process. We encourage manufacturers to start this process as soon as possible since we would anticipate test delays and limited certification inspection delays due to capacities and the rush for certifications to complete before the June 1, 2021.

For more information on how CCC certification, the CCC Self-Declaration and voluntary CCAP or CQC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly hier on Amazon.

Here you can download our brochure about the CCC Self-Declaration.

Here you can download our brochure about the voluntary CCAP or CQC certification.