China to ban production and sale of traditional fuel vehicles

China to ban production and sale of traditional fuel vehicles

The world's biggest auto market, China, is now planning to ban the production and sale of diesel and petrol vehicles, further threatening the future profitability of oil - Nigeria's major revenue source.

A major outcome of this is reduction in the demand for oil in China, a country which is now the world's second-largest oil consumer after the United States.

"Those measures will certainly bring profound changes for our vehicle industry's development", he said, predicting "turbulent" times ahead for the auto industry.

The vice minister, Xin Guobin, said research on a ban is already underway, and that a timeline on possible implementation will come later.

An index tracking new-energy vehicles makers shot up almost 4 per cent early on Monday to a 14-month high, having gained over 20 per cent this year.

China is the world biggest market for new cars, by a significant margin, and all projections see sales only growing with time.

The world's biggest auto producer and manufacturer produced and sold over 28 million vehicles in 2016.

Worldwide auto giants like Ford, and Volkswagen are aiming to develop fully electric cars in China.

China already accounts for the world's biggest market for electric and hybrid vehicles.

With the emerging trend of the world economy, and the effect of fossil fuels on the aggravating state of climate change, China is on way to completely ban the sale of fossil fuel-powered cars in the country. Making the environment sustainable is definitely a motivator for the local authorities to ban fossil fuel powered vehicles in the future.

The government did not give a date for the ban, but the announcement drove up the shares of automakers and lithium battery makers in Asia, with Chinese electric auto leader BYD closing 4.07 percent up in Shenzhen and Toyota up 1.22 percent in Tokyo.

China plans ban of petrol cars.

In July, French Ecology Minister Nicolas Hulot had announced that France would end sales of petrol and diesel vehicles by 2040 as part of the country's plan to meet its targets under the Paris climate accord.

He also said VW would "work hard" to comply with the NEV quota once China implements it next year. The UK and France have both pledged a deadline of 2040.