China to ban sale of fossil fuel cars in E-vehicle push

Javier Howell
September 12, 2017

China will set a deadline for carmakers to end sales of vehicles powered by fossil fuel, in a move to push companies to ramp up efforts to develop electric vehicles for the world's biggest auto market.

China is not only the world's biggest importer of oil and oil products, it is also world's biggest vehicle market with 28 million cars sold in 2016 alone.

Mr Xin said the ministry had started research and will look to draw up a timeline with relevant departments.

The plan would follow decisions by France and Britain which have announced plans to ban the manufacturing and sales of cars running on traditional fuels.

In the new system, 8% of each automaker's production next year should consist of electric and hybrid gasoline-electric vehicles.

China is the world biggest market for new cars, by a significant margin, and all projections see sales only growing with time.

Automakers "have not really tried hard in this sector" and consumers are not so familiar with new-energy vehicles, Cui said, though he predicted that the "impact will be big" when China decides to ban petrol vehicles. It is also the world's biggest market for EVs, of which 500,000 were bought and sold in China previous year, pushing the total number of EVs on Chinese roads past the one million mark.

Geely, Volvo's Chinese owner, aims to sell one million electric cars by 2025, Renault-Nissan, Ford and General Motors are all working to develop electric cars in China.

Earlier this summer, the United Kingdom government announced plans to ban the sale of petrol and diesel cars across the country from 2040, to coincide with when all vehicles are required to be fully electric.

The China announcement is another step in the country's continuous plans for renewable energy.

A ban on combustion-engine vehicles will help push both local and global automakers to shift toward electric vehicles.

He also said VW would "work hard" to comply with the NEV quota once China implements it next year.

Chinese-owned carmaker Volvo said in July that all its new auto models would have an electric motor from 2019.

Xin said the period up to 2025 will be critical for the auto industry.

A similar deadline has been given by France, leading some to predict that China would also opt for a 2040 cut-off point.

Other reports by Insurance News

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