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China will Set a Timetable for Banned Fuel Vehicles

China has begun to study and make a ban on traditional fuel vehicles, Vice Minister of Industry and Information Technology, Xin Guobin said the above information in 2017 China Automotive Industry Development (TEDA) International Forum on September 9.

Previously, there have been a number of countries including the Netherlands, Germany, France and the United Kingdom announced the ban on fuel vehicles, the Netherlands is the most radical country, its planned ban time is 2025.

China's have huge pressure on energy-saving and emission reduction, it also provide more  supports than other countries on the new energy vehicles.

Xin Guobin said in his speech, as of the end of 2016, China's car ownership close to 200 million that bringing severe energy resource and environmental pressure. The Chinese government is committed to reach the carbon emissions peak in 2030, the proportion of primary energy reach 20%. However, according to the current situation, it is still very difficult to meet the standard.

The Chinese government has been providing financial subsidies for new energy vehicles since 2009. But the subsidy policy has a distorted effect on the market significantly, the national authorities launched a wide range of "cheat fill" verification in 2016, the industry generally believe that the financial subsidy policy is not sustainable. According to the current plan, the financial subsidies will gradually retreat since 2019, after 2020 is expected to fully withdraw.


Song Qiuling, deputy director of the Ministry of Economic Affairs, said at the same time that the current policy of financial subsidies for new energy vehicles has made is clear to be withdraw. While implementing the existing policies, the Ministry of Finance will actively cooperate with the Ministry of Industry & Information Technology and other departments to speed up the establishment of new energy Integral trading mechanism. To ensure that the financial subsidy policy for new energy vehicles will not be interrupted after the withdrawal.

In September 2016, the Ministry of Industry & Information Technology issued the "passenger car business average fuel consumption and new energy vehicles integrated management approach (draft)" (hereinafter referred to as double integral policy), plans to implement in 2018, the new energy car car integral ratio requirements are 8%, 10% and 12% in 2018 to 2020 respectively. New energy points can not be carried over in different years.

The policy strongly support the new energy vehicles, in order to meet the points, there are several multinational companies with points pressure reached a joint venture plan with  China's leading new energy vehicles company. Great Wall Motor (601633.SH) also buy shares of Hebei Yu Jie car industry Limited in July.

Recently information from Ministry of Industry & Information Technology confirmed that the policy plan to delayed one year to implement, but it will be sure after the final official documents.

Shenwanhongyuan believes that, despite the new energy vehicle integration policy delayed a year to implement, but trend to encourage new energy vehicles are unchanged. At the same time, due to the average fuel consumption points implement according to plan, part of auto companies will increase production of new energy vehicles to offset the average fuel consumption negative points. Shenwanhongyuan estimates that  China is expected to produce at least 750,000 new energy passenger cars to meet the demand in 2018.

The Chinese government has embarked on a timetable for the development of a ban on traditional fuel vehicles, as well as encouraging new energy vehicles is still unchanged.

Attachment: other countries, regional ban on fuel vehicles schedule

In August 2015, Mary Nichols, chairman of the California Air Resources Board, said California may ban the sale of traditional fuel vehicles in 2030.

In April 2016, the Dutch Labor Party (LabourPVdA) made a public proposal to ban the sale of traditional gasoline and diesel cars in the Netherlands since 2025, ensuring that all new cars are new energy vehicles after 2025.

In May 2016, according to the Norwegian newspaper "Dagens Næringsliv", four major political parties in Norway agreed to ban fuel sales from 2025, but this is not the final decision.

October 2016, according to the German "Der Spiegel" reported that the German Federal Senate to vote the ban on the traditional internal combustion engine car proposal after 2030. The Senate suggested that German lawmakers would urge other EU member states to accept the proposal, allowing only zero emissions vehicles to run after 2030.

In June 2017, the Indian energy department said in a blog post that it plans to ban fuel vehicles in 2030 and India will sells only 6 to 7 million electric vehicles annually by 2020.

In July 2017, French energy minister Nicolas Hulot said that in order to achieve the objectives of the Paris Agreement, France plans to stop selling gasoline and diesel vehicles in 2040.

July 2017, the British government announced that it will comprehensively stop selling gasoline and diesel vehicles since 2040, the market will only allow the sales of electric vehicles and other new energy and environmentally friendly vehicles. The UK government will ensure that no more gasoline and diesel vehicles will travel on the road in 2050, as announced by the UK Department of Environment, Food and Rural Affairs.

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