China is halting production of some cars due to fuel economy standards

Thomson Reuters

BEIJING (Reuters) – China will stop production of 553 passenger car models that do not meet government fuel economy standards, state news agency Xinhua said on Sunday.

The suspension will take effect on January 1, Xinhua said, citing the China Vehicle Technology Service Center.

The models include products from several major domestic manufacturers and joint ventures such as FAW-Volkswagen, Beijing Benz Automotive, Chery and Dongfeng Motor Corporation.

“As the fight against pollution is in full swing, China is pushing for green transportation by tightening emissions limits and promoting the use of new energy vehicles,” the report continued.

China will extend a tax break on the purchase of new energy vehicles until the end of 2020, the government said last week. This is a boost for hybrid and electric car manufacturers as policymakers move away from the traditional internal combustion engine.

Pollution is a hot topic in China, with large parts of the country regularly shrouded in smog, although the government has promised to address the problem and the country may have already turned the corner.

(Reporting by Ben Blanchard; Editing by Kim Coghill)

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