China is looking to ban internal
combustion engine (ICE) cars, according to a Chinese Government official. Xinhua, the official press agency
of China, reported last month that the Chinese government has begun to look into
a ban on said vehicles without disclosing any timeline. However, Xin Guobin, vice minister
of industry and information technology, said the policy will be implemented in
the near future.
Despite some environmental concerns
regarding battery production, EVs are gaining wide acceptance around the globe.
China, the largest car manufacturer, is at the forefront of promoting EVs. A
ban of ICE vehicles will benefit EV manufacturers, especially local players.
International players like Tesla,
however, are not expected to benefit from the policy. Moreover, competition
will be intensified in light of government support.
In short, EVs are here to stay. The
same cannot be said about any specific EV manufacturer, but local players
should flourish as governments support alternative fuel vehicles.
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