LONDON, Aug. 14, 2018 /PRNewswire/ --
"Real world" automotive emissions testing becomes applicable to
all existing models and their variants on 1
September 2018 in the EU.
This more onerous procedure is set to cause localised auto
production stoppages but overall we expect it may only have a small
impact upon steel demand. In this Insight we look at the
implications of the new testing requirements and explain the
reasons behind our view.
Automotive OEMs prepare for WLTP testing
The EU will from 1 September 2018
require all newly-registered light vehicles to have been tested
against new WLTP standards. WLTP stands for Worldwide Harmonised
Light-Duty Vehicles Test Procedure. It measures emissions and fuel
consumption with the aim to provide more "realistic" readings, as
opposed to earlier testing that arguabl did not recreate real-world
driving conditions and performance.
WLTP has applied to all new models and engines in the EU since
1 September 2017 but from this year
will also apply to existing models. If the model has not been
tested it will not be permitted to be registered, and hence
sold.
The WLTP test procedure takes a longer time to carry out per
model than the prior system. It must also be applied to all
variants of a model, where the prior system allowed for testing of
a single model version.
This means that WLTP testing has become a short-term bottleneck
for some EU light vehicle production. Any models not tested by 1
September cannot be sold until a test is completed.
Risk to steel demand viewed as small
In some of our recent market conversations we have heard views
expressed that this WLTP requirement may lead to reduced EU steel
demand in H2 2018. That would seem to be a risk to the extent that
OEMs decide to stop production of non-compliant models until such
time that testing is completed. We think the risk exists but would
have overall quite a small impact for the following reasons:
Read the full story:
https://www.crugroup.com/knowledge-and-insights/insights/2018/auto-emissions-tests-are-not-expected-to-cut-steel-demand/
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