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Published: Wed, September 13, 2017
Global Media | By Abel Hampton

China to ban production and sale of traditional fuel vehicles

China to ban production and sale of traditional fuel vehicles

"These measures will promote profound changes in the environment and give momentum to China's auto industry development", China's Vice-Minister of Industry and Information Technology Xin Guobin has said.

The soaring electric vehicle market is a huge prize for whatever countries move fast enough to become world leaders.

The largest auto market in the world might someday offer only electric and intelligent vehicles. Many Chinese cities have been affected by increasing pollution levels and smog.

China is also the largest producer and market for new energy vehicles, with more than 500,000 of them built and sold past year. "That will leave plenty of time for everyone to prepare". For instance, Shenzhen Desay Battery Technology rallied 3.57 percent while Sunwoda Electronic ended up 5.44 percent. Volvo will introduce its first 100 per cent electric auto in China in 2019, while Ford will market its first hybrid vehicle in early 2018. Beijing Electric Vehicle, the EV division of state-owned BAIC Motor, followed with 36,084 units.

Geely, Volvo's Chinese owner, aims to sell one million electric cars by 2025. It also hopes to give domestic automakers, which struggle to compete against global rivals with a commanding lead in fossil-fuel vehicles, a chance to shine globally with eco-cars.

But if China, the world's largest vehicle market, turns its back on fossil fuel cars, it could change the auto industry forever.

The pattern will accelerate as major automakers dedicate more of their research and development budgets - and subsequently lobbying funds - to the transition to electric vehicles.

China is also planning to introduce a credit system for automakers.

The proposed driving bans promise to be a hot topic of discussion at the Frankfurt International Motor Show this week, Europe's top industry showcase.

Tesla is working on a deal to build its vehicles in Shanghai in order to expand sales there.

He told the Tianjin forum that automakers should have a thorough understanding of the situation and readjust their strategies.

The Chinese government is following in the footsteps of countries like India, France, Britain and Norway, which have already announced plans to ditch gas and diesel cars in favor of cleaner vehicles in the coming years. "It's hard to say who can be the winners at the moment".

Still, according to the US Energy Information Administration (EIA), combustion of petroleum will remain the largest contributor (pdf) to overall energy-related Carbon dioxide emissions well into 2040. The new energy vehicle market is dominated by local manufacturers in China.

"Those who now are outrunning the others in EVs will not necessarily continue to stay ahead", he said.

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