China continues to make environment-friendly policies and keep the carbon impact as less as possible, China is the world’s biggest car market which is now pondering to put a ban on the use of petrol and diesel engines in the cars and vans according to BBC.

China’s vice minister of industry said they have already started research on the policy but it is not confirmed yet when this ban will come into force.

“Those measures will precisely bring profound changes in our car industry development, Xin Guibon told Xinhua news.

China produced 28 million cars last year which is almost the third of global car production. Not only China Europe is also figuring out the sustainable car production mechanism, UK and France announced plans to ban new petrol and diesel vehicles by 2040 in order to reduce the carbon footprint.

Chinese owned auto maker Volvo said in July that it will start producing new electric cars from 2019 onwards. The other market players like Ford, General Motors, Renault—Nissan are also working on electric cars in China.

Global automakers are investing billions to maintain a handsome market share in electric cars ahead of the rules to fight pollution. China is committed to increasing the sales of electric cars by 2025 which should account for at least 1/5th of the total car sales.

According to the proposal, automakers are required to generate 8% of sales from electric and plug-in hybrid cars by next year which has to reach 12% by 2020. Xin said the change would create disturbance in the auto industry during the switchover time.

The policy shift will also affect oil demand in China, the country is currently the world’s second largest oil consumer after the US.