Electric vehicle companies in China received a boost today after a government official nodded to possible plans for a ban on sales of petrol cars in the country.
The official Xinhua news agency reported on Sunday that Xin Guobin, vice minister of the Ministry of Industry and Information Technology, said his department was conducting "relevant research" was looking into possible timeframes for a ban.
No deadline was given by the minister for the policy but he said it would happen "in the near future".
He also predicted “turbulent times” for car makers in the world's largest automobile market if they did not adapt to change.
The news follows a commitment by the UK Government in July to ban the sale of all new petrol and diesel cars from 2040, which was preceded by a similar announcement from France.
Shares in electric and new-energy car makers rose following the report. Ganfeng Lithium extended gains of almost 300 per cent this year, trading up more than six per cent while Warren Buffet-backed firm BYD rose 4.26 per cent in Shanghai today.
China has already been proactive in encouraging the manufacturing of electric cars, with proposals to make one fifth of auto output electric by 2025 currently on the table.