Nigeria In Trouble As China Seeks To Ban Petrol And Diesel Vehicles

Jon Howard
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.

The ban will lead to a reduction of oil demand in China, as the country is now the world's second-largest oil consumer after the United States, US. The ministry will work out the timetable, Xin said.

The Chinese government has already rolled out a number of measures in incentivise the manufacture of electric 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".

As well as moving to satisfy the demands of changing markets, Germany wants to ban sales of such vehicles by 2030, while the United Kingdom and France have pledged to to do the same by 2040.

Of the roughly 28 million vehicles sold in China previous year, just over 1% were electric, according to the International Energy Agency.

China has already been proactive in encouraging the manufacturing of electric cars, with proposals to make one fifth of auto output electric by 2025 now on the table.

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The share of cars powered by electric, hybrid and alternative fuels in France is small - about 4% - but growing fast. Volvo announced that all its cars will be electric or hybrid from 2019.

Already, electric vehicles (EVs) have experienced a surge in ownership in China with the country's largest EV manufacturer, BYD, shipping nearly 47,000 emission-free cars so far this year.

China already supports the development of electric vehicles with billions of dollars in research subsidies and incentives to buyers and an upcoming quota system for automakers.

GM, Volkswagen, Ford, Daimler and many other automakers also have plans to beef up NEVs production.

As the measure looms, foreign automakers have announced plans to boost the production of electric cars in China. The UK and France have both pledged a deadline of 2040.

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

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