China limits auto production of petrol-powered vehicles.
Poor air quality in China Image: Creative Commons |
In a move to reduce excess production, the Chinese government will not approve newcomers to the automotive industry. However, there will be no restriction on established manufacturers.
A 2015 annual capacity of 31.3m vehicles included 25.8m passenger cars and 5.5m commercial vehicles. The actual overall production figures were 24.5m which was an increase of 3% on 2014. 2016 will see that capacity rise by an additional 6m units.
With a market dominated by petrol-driven vehicles, China's new legislation is a response to recognition of the need to reduce pollution.
The government is still encouraging EV production and plans to introduce a a carbon cap-and-trade mechanism to encourage the sale of battery-electric cars, plug-in hybrids and fuel-cell powered vehicles in 2018.