China to totally ban gas and diesel in new car market; with interim targets of 20% electric or hybrid by 2025

In a move that will impact the automotive market, China announced plans to entirely ban the production and sale of all gas and diesel cars and vans. Although the date is not yet announced, China has initiated research projects that will help decide a target date.

 

China plans to ban gas and diesel automobiles entirely. They are currently studying target dates.

 

There is no question China suffers from a smog issue that is having a major impact on health. At the same time, pollution from China is impacting world environmental systems — at least if you ask a scientist, rather than a politician. On the flipside of this is a growing economy that produced 28 million cars last year alone, which is nearly one-third of the world’s production.

In a twist, sales of high-powered and luxury gas vehicles are booming ahead of any changes. In China, electric cars haven’t yet taken off, despite tax incentives. New legislation restricting production is the next big step to help control smog.

 

Volvo is already developing electric models and plans to entirely cut gas-only cars by 2025. Volvo is currently owned by Geely, a Chinese owner.

 

Chinese-owned Volvo ahead of the announcement

E-bikes are popular in China’s urban areas, especially during the frequent smog alerts.

Volvo previously announced it will stop making gas/petrol/diesel cars and focus on electric only. Volvo is owned by Geely, a Chinese owner. Their stated goal is to sell one million electric cars by 2025. Depending on the timing of the government target date in China, Volvo and other electric car companies—such as Tesla — stand to gain the most. Clearly, Chines automakers will already be planning to switch production over time to electric. China’s immediate goal is to have electric and hybrid make up at least 20 percent of all vehicle sales by 2025. In the current proposal, the goals are:

  • 8% of automaker sales electric or plug-in hybrid by 2018
  • 12% of automaker sales electric or plug-in hybrid by 2020
  • 20% of automaker sales electric or plug-in hybrid by 2025.

This isn’t exactly news to other car companies. Ford, GM and Renault-Nissan are developing electric cars for the Chinese market. The electric market will become a gigantic slice of worldwide auto sales. Sales of battery and battery materials will also dramatically increase. There is already a massive e-bike (electric bike) market in China.

The commitment in these countries will also lead to an economic boom in infrastructure. Widely available electric charging stations will be required long before any target date.

UK and France not far behind

Although the market is much smaller, the UK and France have announced similar bans, targeted for 2040. London and other urban areas are either rolling out or looking into, diesel bans in their cities on an earlier timeline. It’s doubtful U.S. and Canadian governments will adopt similar standards in the near future, although urban bans are possible. Any solution in North America would likely include hybrid powertrains due to range constraints and lack of infrastructure for electric charging.

U.S. automakers will also likely allocate most electric production to China, UK and France and any other markets that legislate a ban on gas, especially given the population and demand in China.

Did you miss this?

Other Popular Stories

  • Goodbye NAFTA, Hello USMCA trade deal: it's not all in the name — Canadian dollar soars, stocks rise; autos win, dairy loses
  • First drone crash with a commercial aircraft in Canada triggers safety review and possible new rules
  • Space X Mars plans become feasible: Elon Musk's multi-planet species goal may yet launch
  • Microsoft acquires Montreal AI firm that creates "curious" machines that think like humans
  • Artificial pancreas would reduce need for self-care by diabetics, improve insulin delivery
  • Skilled labour shortage in world oil industry: report
  • CSeries engine problem just an oil seal leak: Pratt & Whitney
  • Strong manufacturing output lifts GDP in October
  • Global car sales will set record this year: Scotiabank
  • Ozone-Destroying Emissions Rising Unexpectedly, Scientists Baffled
  • Only 13% of Canadian manufacturers likely to change export strategy despite trade disputes even though 87% are looking beyond the US market
  • Cars new and used dominate Canada's exports
  • Geosynthetics and clean technologies – preventing contamination, reinforcing terrain and preventing erosion
  • Large CSeries order builds momentum for Bombardier
  • Skills gap costing economy billions; Ontario students ill-prepared for workplace: report
  • Seven electric vehicle trends for 2020 — forecasts, technology, solar and autonomous driving
  • LNG activity heating up in BC as Petronas seeks export licence
  • Continued strength in manufacturing in November: RBC
  • Elon Musk's Hyperloop vision racing ahead of naysayers and regulators — Boring Company receives permission to tunnel 10 miles; early tests of tube successful
  • Canada's wholesale sales rose 0.7 per cent in June, to $56.4 billion
Scroll to Top