It is now towards the mid point of year 2010. Looking back and I have seen extremely turbulence on our industry in past two years.
By latter half of year 2008, all members were bracing for a possible devastating impact never experienced before. Then within a year, everything seems to have turned around and the motor market rebounded almost back to the state before anything had happened.
At this point, I must thank all members who had kept their operation and manpower with minimum adjustment during all uncertainties. Such is excellent attitude for sustaining long-term business and commitment to the society.
Having said so, the market seems to have lost its direction in last two months and poses underlying possible changes. I am sure all members will take similar stance to face and hope things can become positive again.
One of the key functions of the Association is to maintain close dialogue with the Government over the direction and development of standards and regulations. For decades, a strong rapport and understanding has been developed. In general, the authority adopts widely accepted international standards. Progress has been very smooth and harmoniousˇKˇKˇK.well, for most of the time.
There have been moments that the directions from both TD and EPD are difficult to comprehend. While they declared that there would not be unique Hong Kong standards or cocktail ones selected from different countries, sometimes there are peculiar situations over minor subjects that puzzled the industry.
I do understand that for different types of vehicles categories, there are special local needs that we have to be flexible and not straight go by the book, and this is much appreciated. However, on mass produced models like passenger cars, TD introduced strange rules that disturb many of our members. The rule that bans on board video display capability is one example. European and Japanese regulations both allow such device as long as there is automatic deactivation once the vehicle is in gear and/or on the move. Hong Kong simple do not allow such, even when parked, hand brake on and even in a car park, which we see no good reason behind on such need but making car manufacturers very frustrated in setting specification for our market. Many of the associated high tech displays are hinders from the function removal to comply.
Another queer demand is that diesel passenger cars are still discriminated. Over a decade ago, EPD set an extremely high standard to discourage diesel passenger cars. At such time, the reason is clearly stated ˇV to minimize generation of PM (particulate matters) which is harmful to pedestrians. The world has evolved and there are much greener diesel technology from Europe, the latest Euro V emission level has same PM level as petrol engines and the collective other emission is less harmful than a similar petrol engine. However, EPD still insisted that only diesel engines that can meet petrol engine figures could be accepted, without considering the benefit trade off between different toxic gases. This strange insistence has deprived the public to have more efficient and economical diesel models to choose from.
The Association proposes the Government to adopt major worldwide standards as a whole, at least for mass-produced passenger cars models, and not earlier than the home country implementation date.
While going through all challenges over past years, the Association continued its commitment towards members and society. Through reflection to EPD on the difficulty from commercial vehicle operators over both product availability and fuel compliance, we have successfully requested EPD to defer the implementation of new emission standards.
Subsequent to persistent lobbying by the Association, EPD has agreed to accept diesel passenger cars but insists they must meet at least the emission level of Euro V ˇ§petrolˇ¨ passenger cars. This is a hard target to meet and members and the Association shall keep pursuing to EPD to accept full Euro V or VI diesel emission standard. At the moment, only one model can meet with the requirement.
On the other hand, the Association has noticed the Mechanics Registration scheme has come to its third year and first batch of renewal is around the corner. Many registered mechanics from our members are having much concern on whether there will be mandating of registration in the future, as they see vague recognition on their current status. The Association has reflected this concern to EMSD trying to pursue mandatory registration in the near future.
I have also noted there is fresh mention on the cross border holiday pass issue, which was initiated by the Association many years ago. It will be a welcomed arrangement by the public and more opportunity for our members. I just hope it can materialize soon.
The coming year has lots of unforeseen challenges, as well as many opportunities. I hope all members can keep their positive attitude for long term sustained business and take a good balance on bold and prudent decisions. I am sure all can reap well in the years to come.