Climate change: Chinese carmakers lead the EV transition but lag peers in supply chain decarbonisation, Greenpeace says

SAIC Motor, Changan Automobile and Great Wall Motor fare relatively poorly in Greenpeace ranking despite shifting to EVs faster than global peers

Legacy carmakers must phase out fossil-fuel cars faster, after gas guzzlers accounted for 94 per cent of their 2022 sales, organisation says

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Workers contribute to the manufacturing of a car at SAIC Motor’s Lingang base in Shanghai on April 23, 2022. Photo: Xinhua

Published: 9:00am, 20 Oct 2023

China’s largest traditional carmakers are falling behind their global peers on supply chain decarbonisation and material use efficiency, dampening the positive climate-change impact of the country’s fast roll-out of electric vehicles (EVs), according to a new report.

Environmental group Greenpeace East Asia released on Thursday its latest ranking of the environmental performance of the world’s 15 largest traditional carmakers, based on their phase-out of fossil fuel vehicles in favour of EVs, their supply chain decarbonisation, and their resource reduction and efficiency.

Shanghai-based SAIC Motor reported the highest proportion of EV sales among the 15 companies, with zero-emission vehicles (ZEVs) accounting for three out of every 10 vehicles it sold in 2022. However, the company took third place in the ranking due to its slow progress on supply chain decarbonisation.

ZEVs also made up a high fraction of sales for Chongqing-based Changan Automobile and Hebei-based Great Wall Motor, but the companies ranked 12th and 14th, respectively, because they fell short on reducing emissions from production and materials, according to Greenpeace.

An electric-vehicle charger stands on the street in Shanghai on May 6, 2023. Photo: EPA-EFE

“Automakers must audit and disclose the carbon footprint of their materials, commit to the purchase of low-carbon steel, set steel carbon reduction targets, produce fewer SUVs, and invest in the development of zero-carbon steel,” Greenpeace recommended in the report.

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