China to no longer approve new gasoline-powered vehicle factories

by Lei Xing   2016-10-12

- Font Size  +

BEIJINGChina will no longer approve, in principle, new gasoline-powered vehicle factories, according to a statement issued after an executive meeting of the State Council presided by Premier Li Keqiang on October 8.

The move is part of China’s efforts to rein in new projects related to industries struggling with overcapacity such as the steel, coal and electrolytic aluminum sectors. It is also an indirect measure to boost the new energy vehicle sector, which has plans to produce and sell 5 million NEVs by 2020.

The auto industry, although not listed as an industry with “severe” overcapacity like the steel and coal industries, sits on a vehicle capacity of 31 million units with 6 million more still being added, according to the National Development and Reform Commission (NDRC), much more than annual sales of about 25 million units. More than 200 vehicle and special-purpose vehicle manufacturers produce new energy vehicles but of the more than 4,000 NEV models that have been approved for production, only a quarter is actually in production.

Post a Comment (1 Comment)

If you want to comment this article, please log in first. If you have no account, you can create an account by click the button blow.
Sign In Register
1. Mr. Lawrence Driscoll write: (10/11/2016 10:16:24 AM)

This is a dis-incentive for all the engineers working hard to develop cleaner burning fossil fuel burning engines. Is it all fossil fuel-powered vehicles, or gasoline only? Diesel as an alternative has not made much headway in the Chinese market, probably due to the low quality diesel fuel. Natural gas systems are also making little progress.