SIBM Bengaluru Times

to implement the policies regarding the phasing out of fossil fuel vehicles. China had already announced that automakers that wanted to manufacture fossil fuel-powered cars first must produce low-emission and zero-emission cars to attain a new energy vehicle score. The government is in the process of creating incentive programs for companies that make efforts to develop efficient electric vehicles. In 2019, carmakers were enforced to produce a total of 20% or more electric vehicles, and 40% or more by 2020 which increased to 75% last year, a move led by president Xi Jinping back in 2019.

At a time where natural energy has been taking the market by storm this move isn’t a surprise.

Solar and wind energy are now advancing on exponential curves with solar installation rates are doubling, and photovoltaic-module costs are falling by about 30 per cent when compared to two years ago. Using this China has been able to successfully grab the opportunity to define the global plug-in vehicle market and has already become a hotbed of development, with numerous manufacturers already clamored strong footholds in the Chinese plug-in vehicle market. Honda, Nio, and Volkswagen have already produced dozens of models of EVs with the cars getting more and more efficient every year. BYD, who was an early adopter of EV manufacturer has established itself as an industry leader in the market. It leads Chinese electric car sales thanks to several consumer models that are already quite popular in the country, supported by an ever-growing suite of fleet offerings.

The move also further enhances China to cut oil imports, which are a constant drag on its economy.

Shifting money flowing out of the country for fuel imports to domestic renewable electricity generation has only made the deal that much sweeter. UK and France will soon be joining China in achieving the goals of complete phase-out of internal combustion vehicles which is expected to be completed within 2026. India also has plans to end gas and diesel car sales by 2030, while the global leader in EVs Norway, which now has close to 80 percent of new hybrid, electric or hydrogen registered vehicles plans to end all gas and diesel sales by 2025.

It is just one of many remarkable developments around EVs recently. The past year has seen trumpet blast after trumpet blast heralding the arrival of an EV revolution sooner than most analysts expected. How fast that revolution will unfold is the source of much dispute and uncertainty. And it matters a great deal to oil demand, electricity demand, greenhouse gas emissions, air pollution, and global trade flows.