CLEPA Material Regulation Event China ELV — Overall

CLEPA Material Regulation Event China ELV - Overall Status of China ELV - Management Requirements - China Compulsory Certification concerning China ELV - Suppliers’ Impact - Prospect April, 2015 1/8

2/8 Overall Status of China ELV Structure Tech Policy (2006) The key item of China ELV Automobile hazardous substances and Recyclable utilization management requirements (Draft has released in March, 2015 by MIIT. ) GB/T 19515 R&R Calculation Method (Released in 2004, under revising) GB/T 26989 -2011 Recovery Terminology (Released in 2011) Latest Status Implementation Guideline (drafting) ? GB/T 30512 -2014 Substance restriction (Released in 2014) 4 Industrial Standards Testing Methods (QC/T 941 to 944 -2013) （Released in 2013) Automobile hazardous substances and Recyclable utilization management requirements (draft) has just released by MIIT. (Comment period is 13 th April. )

3/8 Management Requirements Implementation Date 1 st January, 2016 (New type vehicle) 1 st January, 2018 (New vehicle) Applicable Vehicle M 1 (the total seats no more than nine passenger vehicles) Domestic production vehicles – be introduced to Bulletin (Type approval). Recyclability & Recoverability Rate (No target rate, but submit rate calculations. ) Forbidden Substances ( Extract from GB/T 30512 -2014 ) Forbidden Substances*1: Lead, Mercury, Cadmium, Hexavalent Chromium, PBB*2 and PBDE*2 *1: Exception list is existed. *2: Brominated flame retardants

China Compulsory Certification concerning China ELV Implementation Date u Recyclability & Recoverability Rate 1 st January, 2010 (New type vehicle) 1 st January, 2012 (New vehicle) u Forbidden Substances 1 st January, 2015 (New type vehicle) 1 st June, 2016 (New vehicle) Applicable Vehicle M 1 and N 1　 Domestic production vehicles and Imported vehicles 4/8

5/8 Recyclability & Recoverability Rate (Only submit Recyclability & Recoverability rate → no target rate) Forbidden Substances ( Extract from GB/T 30512 -2014 ) Forbidden Substances*1: Lead, Mercury, Cadmium, Hexavalent Chromium, PBB*2 and PBDE*2 *1: Exception list is existed. *2: Brominated flame retardants

Exemption List of Forbidden Substances 6/8 - Exemption List (excerption version) : - - Lead as an alloying element ( Extract from GB/T 30512 -2014 ) Steel for machining purposes galvanized steel components containing up to 0. 35% lead by weight Expiry date: Aluminum with a lead content up to 0. 4% by weight without any date Copper alloy containing up to 4% lead by weight - - Lead and lead compounds in components Batteries Lead in solders in electrical applications or on electronic circuit boards Lead in a glass or ceramic matrix compounds - not cover the use of lead in glass in bulbs and glaze of spark plugs Expiry date: without any date - - Mercury Discharge lamps for headlight application Expiry date: Fluorescent tubes used in instrument panel displays without any date

Suppliers’ Impact MDS Reporting Chinese OEMs request suppliers to use their specified tool / method such as IMDS, CAMDS and Test report. How to reduce our work load for MDS reporting - To avoid submitting any test reports to OEMs. - To convert our data between IMDS and CAMDS smoothly. Forbidden Substances How to change over 6 banned materials / chemicals in our products - To change over ‘Brominated flame retardants’ such as PBB and PBDE (not regulated in EU Directive) 7/8

Prospect China is the biggest market for automobile supply chain! JAPIA would like to cooperate with European OEMs and CLEPA to follow up China related regulations. 8/8

CLEPA Material Regulation Event Indian ELV - Overall Status of Indian ELV - Indian Latest Situation - Difference between EU and Indian ELV - Prospect April, 2015 1/6

Overall Status of Indian ELV 2/6 Institutional Framework for Automotive Regulations in India Bureau of Indian Standards (Transport Divisional Council) Ministry of Shipping, Road Transport & Highways (Motor Vehicles Act & Central Motor Vehicles Rules) Ministry of Environment & Forests CMVR-Technical Standing Committee Automotive Industry Standards Committee Chairman- ARAI Latest Status “Indian ELV - AIS 129” standard has been adopted in the CMVR meeting in January 2015 and this standard is published in ARAI*1 website ü Regulation Implementation date is not fixed yet. *1: Automotive Research Association of India

Indian Latest Situation 3/6 Recycle Infrastructure ü No information about the progress of recycling infrastructures ü Expected to establish 10 ‘Inspection & Certification and Recycling Centers’ across India before the ELV mandate. End-of life Vehicles ü All vehicles manufactured before 2000 are considered as end-of-life vehicle (under proposal). Vehicle Inspection System ü Already started ‘Vehicle Inspection System’. But limited vehicle types and only visual inspection are performed. ü All vehicles manufactured before 2000 are considered as ELV because these are not fuel efficient, old emission technology and to promote fuel efficient cars and Hybrid/Electric vehicles.

4/6 ü Govt. is formulating a regulation for safe disposal of old vehicles. ü Discussion on Implementation dates is yet to be started. ü Indo-German Environment Partnership (IGEP) supports this activity. ü CPCB has initiated a study jointly with Giz-IGEP of Indian ELV regulation ü CPCB is considering banning of old vehicle (15 years old) Requirement Responsibility 1. a Approval rights for ‘Dismantling Agency’ Government of India 1. b Provide dismantling guidelines information to the agency Vehicle Manufacturer 1. c Submit the old vehicle to ‘Dismantling Agency’ 1. d Dismantle old vehicles & issue “Certificate of destruction” Demonstrate vehicle to achieve Reusability, Recyclability & 2. a Recoverability (RRR) target (Reusable and / or Recyclable min. 80% by mass & Reusable and / or Recoverable min. 90% by mass) 2. b Test and issue type approval certificate for RRR rate 3. Restrict heavy metals usage (lead, mercury, cadmium or hexavalent chromium) Giz: Gesellschaft für International Zusammenarbeit CPCB : Central Pollution Control Board Last owner of ELV Dismantling Agency Vehicle Manufacturer Test agency Vehicle Manufacturer

Difference between EU and Indian ELV 5/6 Mandatory Scope EU: Vehicles of category M 1 and N 1 India: Vehicles of category M 1, L 1 and L 2 (Not including spare parts) Forbidden Substances for Motor Vehicles EU： Lead, Mercury, Cadmium, Hexavalent Chromium India： Lead, Mercury, Cadmium, Hexavalent Chromium Recoverability Rate for Motor Vehicles EU: Recyclability rate (85% and more), Recoverability rate (95% and more) India: Recyclability rate (80% and more), Recoverability rate (90% and more) MDS Reporting Tool EU: IMDS India: IMDS (major OEMs’ plan)

Prospect 6/6 q India is focusing to create a feasible End of Life Vehicle Policy such as vehicle recycling and scrapping safely. q Establish Recycling infrastructure (around 10) q Learn from International experience about process and documentation required to establish compliance to ELV standard JAPIA would like to cooperate with European OEMs and CLEPA to follow up Indian ELV.

CLEPA Material Regulation Event ELV in South East Asian Countries - Overall Status of South East Asian - Malaysian Standard - Difference between EU and Indian ELV - Prospect April, 2015 1/6

Overall Status of South East Asia 2/6 Latest Status – Vehicle Sales Volume Vietnam (111) 4 1 5 Thailand (1, 330) Country Name (Vehicle Sales Volume, unit = thousand/2013 year) 3 Malaysia (656) 2 Indonesia (1, 230) Philippine (208)

3/6 Latest Status – ELV Matters Vietnamese Decision 50/2013/QD-TTg ‘ Recycle & Handling of Waste Product’ 2 1 Malaysian Standard introduce ECE Regulation 133 ‘ Reusability, Recyclability and Recoverability’ Malaysian Authority would like to lead Automotive Regulation Policy in Southeast Asian countries.

Malaysian Standard 4/6 Introduction of ECE Regulation No. 133 ü Adopt global 3 R standard (ECE Regulation No. 133) as Malaysian Standards effective 1 st January, 2022. Applicable Vehicle • Applicable Vehicle: M 1 and N 1 category 3 R (Reduce, Reuse, Recycle) • Reusable and/or recyclable : 85% and more • Reusable and/or recoverable : 95% and more Hazardous Substances • Prohibited Substances: Lead, Mercury, Cadmium and Hexavalent Chromium Vehicle Inspection System ü Introduce ‘Voluntary Vehicle Inspection Program’ through an annual vehicle inspection for passenger vehicles aged 5 years and above.

Vietnamese Decision 5/6 Responsibility for Manufacturers and Importers ü Recover their sale products. ü Transport recovery products to waste treatment companies. ü Report the volume of sale, recovery and treatment products. 　 Recycle Products l Motorcycle (Implementation Date: 1 st January, 2018) l All Type of 4 -wheel Vehicle (Implementation Date: 1 st January, 2018)

Prospect 6/6 South East Asian Countries has just started to prepare any ELV and Recycle Rules. JAPIA would like to cooperate with European OEMs and CLEPA to follow up their ELV and Recycle Rule.