China is planning to ban the production and sale of fossil fuel cars.
According to a report in Bloomberg, Chinese regulators are working on a timetable for the ban, which will set a deadline for automakers to end sales of fossil-fuel powered vehicles.
Coming from the world’s biggest vehicle market, this is quite a statement.
It is expected that the eventual ban will have a massive impact on both the environment and automotive industry.
China is not the first country to announce such a ban. Both France and the U.K. have said that they are aiming to ban sales by 2040.
“The implementation of the ban for such a big market like China can be later than 2040,” Liu Zhijia, an assistant general manager at Chery Automobile told Bloomberg. “That will leave plenty of time for everyone to prepare.”
Automakers have already begun adapting to the shift in vehicle production. In July, Chinese-owned Volvo announced that it will cease production of purely internal combustion (ICE) vehicles by 2019 and will launch five fully electric vehicles (EV) by 2021.
Unsurprisingly, news of the ban has had a positive effect on the share price on Chinese EV company BYD and also battery and lithium producers.
Backed by U.S. billionaire investor extraordinaire Warren Buffet, BYD shares jumped over 7 percent.
Although Tesla has become synonymous with EVs, it is local companies that are dominating the Chinese EV market. According to Bloomberg, BYD is leading the pack in 2017, followed by state-owned Beijing Electric Vehicle.
China’s plan to ban fossil fuel cars fits with the country’s recent green initiatives and industrial ambitions.
Under Made in China 2025, the government will financially assist 10 industries – including those producing computer chips, aerospace and EV technology – in becoming global leaders.
We now live in a world where China is becoming greener and more innovative than America. While China invests heavily in a cleaner world that runs on lithium, U.S. President Donald Trump continues to cosplay as a coal miner.
Hey, nothing says “the future” like burning million-year-old fossils, right?