One of China’s largest state-owned automakers has just announced that it will phase out the production and sales of all petrol vehicles by 2025, as Beijing government considers taking all fuel-burning cars off the country’s roads. Beijing Automotive Group Co (BAIC) chairman Xu Heyi said over last weekend the company will phase out sales of conventional petrol and diesel cars in Beijing by 2020 and nationwide by 2025.
The decision only applies to cars the company makes itself and will not affect vehicles it makes in partnership with South Korea’s Hyundai and Germany’s Daimler. The news comes as Beijing debates a nationwide ban, though a date for entirely eliminating petrol vehicles has yet to be announced.
For now, China has put in place a series of restrictions and also incentives to compel carmakers to produce more fuel-efficient and eventually petrol-free cars as it looks to clean up its polluted cities.
Authorities will implement a complex quota system in 2019 requiring makers to produce a minimum number of electric cars.
Beijing originally wanted to start enforcing the rule in 2018, but delayed its implementation by a year after Germany and some foreign firms raised concerns. But as the new direction has been made clear, foreign automakers have ramped up plans to make electric vehicles in China. Geely owned Volvo Cars plans to introduce its first 100% electric car in China in 2019.