China auto sector in anticipation for new era

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China is working on a timetable to end sales of fossil-fuel-based vehicles. China's Ministry of Industry and Information Technology said Sunday it is set to launch a "double point-based system" to regulate domestic car manufacturers.

The move is seen as the central government's latest efforts to boost green car manufacturing while phasing out its gas-burning vehicles. The move to electric vehicles will help alleviate the country's severe air pollution.

The new rules will have two separate systems to evaluate fossil-fuel cars and its new energy counterparts. Based on the new regulations, auto-makers can sell a certain number of new energy cars to rack up a high point. Otherwise, it can only buy green cars from competitors in exchange for points or produce fewer diesel cars.

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Thanks to that news, China’s new energy stocks have increased strongly from Monday. Battery producers and vehicle manufacturers, such as Beijing Electric Power and Ningbo Joyson Electronic, even jumped 10 percent in stock price respectively.

In fact, China has already strictly limited the number of registrations for new vehicles in such large cities as Beijing and Shanghai. But qualified electric models are exempt, encouraging buyers to shift.

China, however, is not an exception in the auto industry to catch up the new energy era. Governments around the world accelerate the progress of legislation to ban fossil-fuel-powered cars, and the era of electric cars may be coming sooner than expected.

European legislators are the busiest when it comes to promoting green energy. The most ambitious plans have been unveiled in Norway and the Netherlands. Legislators plan to phase out the sale of fossil-fuel-based vehicles by 2025.

The German government has passed a resolution to ban the sales of internal combustion engines by 2030. France and the UK are planning to phase out the sale of non-electric cars by 2040. And India is expected to have electric cars take 44 percent of all vehicle sales by 2030 and is offering tax breaks to reach that goal.

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