The Ministry of Industry and Information Technology, Ministry of Finance, Ministry of Commerce and two other administrations have co-released a new regulation called “dual points” for automakers, which urges them to cut down on the production of gasoline and diesel vehicles and promote new energy cars, the 21st Century Business Herald reported.
The new, point-based regulation means that automakers will lose points on the import and manufacture of fuel-consumed cars, and gain points on the production of green energy cars. The rule will take effect from April 1, 2018.
The new policy will force many automakers to adjust their business structures and begin the transformation to new energy cars, said Fang Jianhua, chairman of the New Energy Car Venture Capital Sub-fund at the National Fund for Technology Transfer and Commercialization.
For example, Geely Automobile has put forward a plan to boost sales of new energy cars to 90% of its total sales.
By the end of 2016, there were 194 million vehicles in China. Gasoline and diesel used for cars has accounted for more than 70% of total fuel consumption.