BEIJING – Chinese state-owned car manufacturer BAIC Motor said it will phase out the production of conventional fuel-powered vehicles by 2025 to promote new energy vehicles, the state newspaper China Daily reported on Tuesday.
“Our goal is to stop sales of self-developed conventional fuel-powered cars in Beijing by 2020 and stop their production and sales nationwide by 2025,” BAIC Chairman Xu Heyi told the newspaper.
BAIC Motor is one of the leading electric and hybrid car manufacturers, and in November its subsidiary Beijing Electric Vehicle Company sold more than 21,000 cars, an 85 percent increase compared to October.
In addition to the vehicles under its own brand, BAIC Motor is a partner in China of the South Korean manufacturer Hyundai and the German automotive company Daimler AG, owner of Mercedes-Benz.
Last weekend, Xu participated in the inauguration of a new center for technology and innovation of new energy vehicles in Beijing, which is expected to become a platform to facilitate innovation in the sector.
BAIC Motor’s announcement came at a time when electric and hybrid vehicles are gaining momentum, after China, the world’s largest car market, in September said that it was studying a possible ban on the production and sale of fuel-powered vehicles in an unspecified future.
The data published Monday by the China Association of Automobile Manufacturers confirmed the trend, since sales of electric and hybrid vehicles, which totaled 119,000 units in November, saw an 83 percent year-on-year increase.
Several automobile manufacturers have joined the campaign to promote new energy vehicles, such as Changan Automobile, which announced in October that it would stop selling vehicles powered solely by fuels by 2025.
The Swedish manufacturer Volvo, owned by the Chinese multinational automotive company Geely, also announced in July that from 2019 onward all models launched on the market will contain an electric motor.