The city of Chengdu in southwestern China is the latest in a race of cities to introduce policies to support the new energy vehicle industry.

The city, famous for being the home of China's panda breeding program, recently issued new regulations on the ride-hailing industry, requiring new vehicles used for ride-hailing to be new energy vehicles (NEVs).

Chengdu issued regulations on the ride-hailing industry in 2016, and the latest policy is an update to that regulation, which has been in effect since July 26, 2021.

Vehicles purchased prior to the enactment of the new regulations are not affected.

According to the China Association of Automobile Manufacturers, China's new energy vehicle sales reached 1.21 million units in the first half of this year, a twofold increase year-over-year.

At the end of last month, the Political Bureau of the Communist Party of China Central Committee held a meeting to tap the potential of the domestic market and support the accelerated development of new energy vehicles.

This is one of China's most closely watched high-level meetings, often with policy implications.

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(Photo source: CnEVPost)