China Yuchai (CYD)

[rngmsl]

High-polluting Vehicle Elimination to Benefit Bus and Heavy-duty Truck Markets.
According to the 12th Five-Year Plan (2011-2015) of Air Pollution Control in Key Areas (the Plan), high-polluting vehicles, also known as yellow-labeled vehicles, will be eliminated from main cities in air pollution control key areas by the end of 2013. By the end of 2015, yellow-labeled vehicles that registered before 2005 will be eliminated nationwide with no yellow-labeled vehicles running on roads of Beijing, Tianjin, Hebei, Yangtze Delta and Zhujiang Delta regions.

China will invest ¥94 billion ($15 billion) from 2012 to 2015 in eliminating 5.44 million yellow-labeled vehicles in key areas with bus and medium- and heavy-duty truck markets benefitting the most.
China had 15.2 million yellow-labeled vehicles by the end of 2011, accounting for 16.4 percent of the whole vehicle parc. Most of the country’s vehicle pollution can be attributed to medium- and heavy-duty trucks as well as medium and large buses that have not reached the State III or above emission standards. The country is estimated to eliminate 348,000, 392,000, 610,000 and 778,000 units of high-polluting large buses, medium buses, heavy-duty trucks and medium trucks respectively during the 2012-2015 period, according to a report of Bank of China International Securities (BOCI Securities).

BOCI Securities says most city buses under the State III emission standards will be eliminated or to be replaced by energy-saving and new energy buses including hybrid buses, CNG and LNG buses in the next few years.