China joins the “no more fossil fuel cars” club
France and the UK have both pledged to ban fuel fossil-powered cars on their roads by 2040. Norway and the Netherlands have announced more aggressive plans to shift gears in the auto industry even more quickly. And now China, the world’s second-largest economy, most populous nation, and a major user of fossil fuel technology, has joined the cause. As of yet, the precise deadline for when China will ban fossil fuel-powered vehicles has not been announced – but the fact that it is happening at all is a massive boon to environmentalists the world over. China has the largest vehicle population in existence – last year, 172 million-vehicles.
China is working to curb carbon emissions and improve air quality by 2030, but the added measure of getting diesel and petrol cars off the road could take longer. Liu Zhijia, assistant general manager at Chery Automobile Co. (the country’s biggest passenger vehicle exporter), said: “The implementation of the ban for such a big market like China can be later than 2040. That will leave plenty of time for everyone to prepare. Those who currently are outrunning the others in EVs will not necessarily continue to stay ahead.”
Zhang Yang, vice president at Nio, which is looking to bring a battery-powered sport-utility vehicle to market by mid-December, says: “This will ask everyone, from energy and technology sectors as well as traditional automakers, to change to the lane to develop new powertrains. It’s hard to say who can be the winners at the moment. All of us should stand the test of speed and endurance in this run.”
Dominion holds Delphi Automotive, as well as a number of other relevant companies, in its Global Trends Managed Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.