"Those
measures will certainly bring profound changes for our car industry's
development," Xin Guobin told Xinhua, China's official news agency. China
made 28 million cars last year, almost a third of the global total. Both the UK and
France have already announced plans to ban new diesel and petrol
vehicles by 2040, as part of efforts to reduce pollution and carbon emissions.
Chinese-owned carmaker
Volvo said in July that all its new car models would have an
electric motor from 2019. Geely, Volvo's Chinese owner, aims to sell one
million electric cars by 2025. Other global car firms including Renault-Nissan,
Ford and General Motors are all working to develop electric cars in China.Automakers are jostling for a slice of the growing Chinese market ahead of the introduction of new rules designed to fight pollution. China wants electric battery cars and plug-in hybrids to account for at least one-fifth of its vehicle sales by 2025.
The proposals
would require 8% of automakers' sales to be battery electric or plug-in hybrids
by next year, rising to 12% in 2020. Xin predicted
the change would create "turbulent times" in the industry. The shift
will also have a knock-on effect on oil demand in China. The country is
currently the world's second-largest oil consumer after the US.