NDRC guidelines set to boost auto industry competitiveness

China has decided to curb the capacity of gasoline and diesel cars and raise the bar for electric vehicles, in a bid to build a more competitive automotive industry in the world's largest car market, according to the country's top economic planner.

In a guideline released on Tuesday, the National Development and Reform Commission said China would ban the establishment of any new company that produces only conventionally fueled vehicles, including hybrids and plug-in hybrids.

Scheduled to come into effect from Jan 10, the guideline is part of a drive to trim overcapacity in the sector and enhance the quality of its budding electric vehicle segment.