China has been working on a timetable to end the productions and sales of traditional gasoline-fueled cars, in a move to promote green vehicles and tackle the country’s grave pollution problems, the vice minister of Industry and Information Technology Xin Guobin said in an auto industry event in Tianjin over the weekend.
France, the United Kingdom, Norway and the Netherlands have each announced timelines to ban the production and sales of gasoline cars. Among them, Norway and the Netherlands aim to end the sales of gasoline cars by 2025. The Chinese government has started research on setting an appropriate timetable to end the sales and production of gasoline cars, according to Xin.
As China intensified its push for green energy vehicles, foreign automakers are partnering with local players to increase their new energy car production capacities. For example, Daimler AG signed an agreement to make electric cars in China with BAIC Motor Corp in June. Volkswagen AG and Anhui Jianghuai Automobile Group formed a joint venture to make electric vehicles in May.
Industry analysts project gasoline cars will not completely exit the Chinese market until somewhere between 2035 and 2045 due to the large number of traditional fuel cars currently in production and use, and the relatively low penetration rate of new energy cars. Last year, China produced about 282 million cars. Of the total, 517,0000 were new energy vehicles, accounting for only 1.8% of all cars made, according to an automobile industry report by Guoxin Securities.
Last September, China published the “Tentative Administrative Rules on Enterprises Average Fuel Consumption and New Energy Vehicle Credits” and is currently seeking public feedback on setting specific targets for car makers to pursue green energy car production.
One proposal is to set up a new energy vehicle credit system for consumer vehicle producers to achieve average fuel consumption rates of 6 liters per kilometer, 5.5 liter per kilometer and 5 liter per kilometer in 2018, 2019 and 2020. For example, if a car maker produces one million cars in 2018, it will also need to produce either 20,000 electric cars or 40,000 plug-in hybrid cars.