Economy, Auto

China Bans Production of 553 Car Models

The suspension took effect on Jan. 1.The suspension took effect on Jan. 1.

China suspended the production of 553 passenger vehicle models that have failed to meet the government’s fuel consumption standards.

The suspension took effect on Jan. 1. The models include products from several major domestic producers and joint ventures such as FAW-Volkswagen, Beijing Benz Automotive, Chery and Dongfeng Motor Corporation, Reuters reported.

“With the war on pollution in full swing, China has been pushing for green transportation by toughening emission limits and encouraging the use of new energy vehicles,” state news agency Xinhua said on Sunday.

China will extend a tax rebate on purchases of new-energy vehicles until the end of 2020, the government said last week, a boost for hybrid and electric car makers amid a shift by policy-makers away from the traditional internal combustion engine.

Pollution is a hot button issue in China, with large swathes of the country regularly engulfed in smog, though the government has vowed to tackle the problem and the country may already have begun to turn the corner.

China has been cracking down on chronic pollution in the past year through measures including curbs to steel supply, restricting coal usage, and a plan to phase out vehicles powered by fossil fuels. The latest announcement marks the first time China has come up with an official list of offending vehicles and there will be more to come, said Wang Liusheng, a Shanghai-based analyst at China Merchants Securities Co.

“To emphasize a cut back on energy consumption, such documents will surface frequently in the future,” Wang said in an email. “It is an essential move to ensure the healthy development of the industry in the long run.”

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