Followed by Britain and France, China on the verge of curtailing the production of petroleum-based car, and augmenting the electric car industry.
China is the largest auto market in the world, given the number of vehicles sold annually.
According to the state media, China’s Industry Ministry, is developing a timetable to permanently halt the production and sales of fuel cars. China’s main motive is to boost the development of electric technology.
The report did not however divulge the target date, but Beijing has been coercing automakers to accelerate the development of electric cars.
The Ministry has begun research on formulating a schedule to stop production and sales of traditional energy vehicles, informed Xin Guobin, Vice Minister of Industry and Information Technology. The statement was issued by Xinhua News Agency and the Communist Party’s newspaper, People’s Daily.
These measures will bring in massive changes in the environment and provide impetus to the country’s auto industry, Guobin said to the CCTV state television. “Enterprises should strive to improve the level of energy saving for traditional cars and vigorously develop new energy vehicles as per the new parameters,” He concluded.
Communist leaders are eager to curb China’s growing demand for imported oil since they see electric car as a lucrative industry where the country can take an early lead.
In 2016, China surpassed the United States as the largest market for electric car. The sales of electric and gasoline-electric hybrids rose to 336,000 vehicles, which was 50 percent increase over 2015, while the U.S. sold only 159,620 vehicles.
A mandate was sanctioned where electric and gasoline-electric hybrid vehicles should constitute eight percent of each automaker’s output by 2018. The output should increase to 10 percent in 2019, and 12 percent in 2020. China is expected to have 70% of its cars in electric by 2025.
Automakers who fail to meet the targets can purchase credits from competitors who have surplus.
Following the announcement for electric cars in July, France and Britain will cease the sales of gasoline and diesel automobiles by 2040. They aim to curb pollution and carbon emissions that lead to global warming.
Volvo is set to announce its new electric car in China in 2019. Similarly, Ford will showcase its first hybrid car in the beginning of 2018.