China has asked automakers to sell a minimum number of new energy vehicles every year from 2019. It is a key step in government efforts to phase out vehicles that use fossil fuels from the world’s biggest car market.
Automakers making and selling passenger vehicles in China must get a minimum new energy vehicle credit score starting 2019 – this means that 10% of their total sales in 2019 and 12% in 2020 should comprise these green vehicles, China’s Industry Ministry said in a statement.
The government said carmakers making or selling more than 30,000 units a year must comply with the rule or they will have to buy credits.
The targets closely mirror previously announced plans, but remove an explicit 8% for 2018, giving automakers an extra year, Reuters reported.
China, which has vowed to cap its carbon emissions by 2030 and curb worsening air pollution, joins the United Kingdom and France in setting out a timetable to eliminate vehicles using petrol and diesel, according to Bloomberg.
Subsidies to help local manufacturers
Global manufacturers such as billionaire Elon Musk’s Tesla, Nissan Motor and General Motors are racing to make their way into China’s electric vehicle market. But generous government subsidies are helping local manufacturers succeed as well, according to the Bloomberg report.