On December 18, 2018 the National Development and Reform Commission issued Provisions on Investment Projects of Automobile Industry, effective January 10, 2019, banning the construction of four kinds of oil-fueled vehicle projects (e.g. establishing independent oil-fueled vehicle firms).‍‍

Capacity expansion of traditional oil-fueled vehicles will be controlled more stringently. Enterprises intending to expand oil-fueled vehicle capacity have to meet five conditions, like exceeding the industry’s average level in the last two years in automobile capacity utilization, proportion of new energy vehicle output, etc.

Further, the government is to supervise BEV (battery electric vehicle) projects strictly so that repeated, low-level projects can be avoided. Record management is to replace approval management for some projects (e.g. establishing Sino-foreign joint ventures engaged in car production, BEV manufacturing enterprises, etc.).