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China to suspend some car production over fuel consumption standards

China is the world’s biggest car market, with nearly 200 million registered vehicles by the end of 2016, with only 1.09 million of those vehicles considered as new-energy models. (Reuters)
BEIJING: China will suspend the production of 553 passenger vehicle models that have failed to meet the government’s fuel consumption standards, state news agency Xinhua said on Sunday.
The suspension will take effect from January 1, Xinhua said, citing the China Vehicle Technology Service Center.
The models include products from several major domestic producers and joint ventures such as FAW-Volkswagen, Beijing Benz Automotive, Chery and Dongfeng Motor Corporation.
“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,” the report added.
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 carmakers 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 the turn the corner.

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