China, the world’s largest auto market, is completely banning the sales of fossil fuel cars. With over 28 million cars sold in China just last year, which is 10 million more cars sold than the U.S., the country wanted to make a change in the industry.
They are setting this ban to fade out diesel and gasoline run vehicles forever. Zero-emission electric cars will be replacing the outdated combustion-ending automobiles. China has followed in the footsteps of both the U.K. and France, as all three of these countries expect to have completely banned fossil fuel vehicles by 2040.
The incentives behind the deal
Not only is China banning the vehicles, but they have designed incentives for the equipment manufacturers and customers alike to make the switch. They hope that giving automakers incentives to create the cars will encourage other manufacturers to do the same. They created these incentives so car companies will switch their product to electric more easily. This, in turn, will inspire other companies to do the same.
Some incentives include: reduction in consumption and purchasing tax, vehicle registration fees, as well as massive subsidies for manufacturers to be able to produce the vehicles. The prices have decreased and the monetary assistances has increased over the last five years.
A conscious decision
China is the second largest economy on the globe. This means they will not only be influencing the surrounding countries to make the sustainable switch, but will influence the entire world. China is the world’s deadliest country for air pollution, and they are making the conscious decision to change that title. They hope that they can influence other major powers to continue on this renewable path in the next coming years.
The automobile industry across the world is in for a massive change, and the world powers are leading the way.