China re-classified petrol-electric hybrid vehicles on Monday so they get more favourable treatment than all-petrol or diesel counterparts under new clean car rules, making it easier for automakers to meet environment quotas and offer more choice.
China has some of the world's strictest rules regarding the production of fossil-fuel vehicles, as it battles unhealthy levels of air pollution in its crowded cities.Those rules have pushed both domestic and international automakers including Tesla Inc and Volkswagen AG to spend billions of dollars on the development and production of new energy vehicles , such as all-electric, plug-in hybrid and hydrogen fuel cell vehicles.
However, the system has been criticised for offering few incentives for automakers to improve petrol cars' efficiency.