19 September, 2017
China is developing a national strategy for electric cars and may ban fossil fuel-powered vehicles, China Daily has reported.
China's ministry of industry and information technology has begun work on a timetable for banning the manufacture and sale of traditional cars, Xin Guobin, vice-minister of industry and information technology told a forum on automotive industry development, according to the China Daily report.
More than 500,000 smart electric cars were built and sold in China last year and there are more than 1 million new energy vehicles on the road in the country, China Daily reported.
Subsidies worth up to half of the original price of electric cars are available, but these may lead to blind expansion by auto makers, Song Qiuling, a deputy section chief from the ministry of finance told the forum, according to the news report.
Subsidies will gradually be reduced and a new energy credit policy introduced, Song said.
The UK government announced in July that it will ban petrol and diesel car sales from 2040 and focus on electric vehicles.
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Ian Laing, Partner, Pinsent Masons
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