The World's Largest Car Market Might Ban Gas Vehicles

The World's Largest Car Market Might Ban Gas Vehicles

The World's Largest Car Market Might Ban Gas Vehicles

China will set a deadline for automakers to end sales of fossil-fuel-powered vehicles, becoming the biggest market to do so in a move that will accelerate the push into the electric auto market led by companies including BYD Co. and BAIC Motor Corp.

China - the world's second largest oil consumer is planning to ban petrol and diesel run cars.

"The ministry has also started relevant research and will make such a timeline with relevant departments".

"The measures promote profound changes in the environment and give momentum to China's auto industry development", he told state broadcaster, China Central Television.

French carmaker Renault, which started producing cars in China a year ago, will roll out two new-energy vehicles in the country - a sedan and small SUV - in 2018 and 2019, said Florence de Golfiem, its communications vice president for China.

More than a dozen cities, including sprawling Beijing and Shanghai, have already taken steps to encourage sales of electrified vehicles.

He added: "If China says no more ICE (internal combustion engines), the rest of the world will follow because the rest of the world can't lose China's market".

Analysts are unanimous on the impact of such bans on the pricing and relevance of oil in the nearest decade.

China produced and sold more than 28 million vehicles a year ago, according to the International Organisation of Motor Vehicle Manufacturers.

According to a Bloomberg report, available here, the world's biggest oil importer, China is looking to ban fossil-fueled cars in the country.

Under the proposed quotas, electric and hybrid gasoline-electric vehicles would have to make up 8 per cent of each maker's output next year, 10 per cent in 2019 and 12 per cent in 2020.

According to BBC, China wants electric battery cars and plug-in hybrids to account for at least one-fifth of its vehicle sales by 2025.

In July, French Ecology Minister Nicolas Hulot had announced that France would end sales of petrol and diesel vehicles by 2040 as part of the country's plan to meet its targets under the Paris climate accord.

China's biggest auto manufacturers are facing a seismic shift, with the help of the government, in a bid to drastically reduce the country's carbon footprint in the decades to come.

The move would follow similar announcements made by France and the United Kingdom this year.

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