Global carmakers are grappling with forthcoming rules requiring them to produce electric vehicles in China, the world’s largest car market.
While still under discussion, a draft of the rules — seen by several auto industry leaders at this month’s Shanghai Auto show — would require as much as 8 per cent of their sales in China to be electric vehicles as early as next year.
Carmakers who missed the target would be forced to buy expensive “credits” from competitors who overshot. The quota is set to grow in subsequent years, according to drafts of the rules seen by executives.
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