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China will phase out new sales of gas-powered cars and bring eco-friendly ones to the mainstream by 2035, according to the China Society of Automotive Engineers.
According to the association, all cars sold in 2035 in China would become "new-energy" vehicles like EVs or hybrids.
President Xi Jinping has pledged to achieve carbon neutrality in China by 2060.
It is part of China's national environment strategy to promote the use of eco-friendly vehicles through subsidies.
The policy bodes well for Japanese automakers that have progressed with electric vehicle development.
Japan's Toyota Motor Corp. recently said that it had exceeded 1 million units in its total hybrid car sales in China.
