Going electric: China eyes gasoline and diesel auto ban

Electric cars are being encouraged in India and China

China is now the second largest oil consumer in the world after the US.

Speaking to Chinese news agency Xinhua, China's vice minister of industry and information technology, Xin Guobin, said the potential measures "will certainly bring profound changes for our vehicle industry's development". "The ministry has also started relevant research and will make such a timeline with relevant departments", said Xin Guobin vice minister of industry and information technology.

He added: "Those measures will certainly bring profound changes for our auto industry's development". The country said it would ban production of gas-powered vehicles by 2040.

China is preparing to put the brakes on gasoline and diesel cars.

To help spur the industry, the Chinese government already gives homegrown electric vehicle makers big subsidies. The Chinese government is reported to be working with regulators over the timeline for discontinuing production and sales of vehicles running on fossil fuels. The country accounted for nearly a third of the cars that were manufactured a year ago.

China, in an effort to meet its promise to cap carbon emissions by 2030, is the latest country to unveil plans to phase out vehicles that run on fossil fuels.

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Chinese-owned Volvo recently announced it will produce only electrified drivetrains - in hybrid, plug-in and BEV form - for all new models launched in 2018 and beyond.

China's vehicle market sustained its recent run of growth in August, continuing to expand after a weak start to the year brought about by a rise in China's auto-sales tax.

Motorists in China are also already the biggest buyers of cars powered by electric and hybrid systems - which use a combination of batteries and internal combustion engines.

He also said VW would "work hard" to comply with the NEV quota once China implements it next year.

Guolin predicted that the auto industry will be going through some "turbulent times", the Xinhua report said. That is, it can happen along with similar restrictions in the United Kingdom and France.

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