Chinese officials have announced that subsidies on electric and hybrid cars will be phased out by the end of this year.
According to the AFP news agency, Chinese officials say the sector no longer needs government support after the increase in sales.
The finance ministry said in a statement on Friday that the 30 per cent subsidy would be phased out by early 2022 and would be phased out by the end of the year."Vehicles registered after 31 December 2022 will not be subsidized."
Sales of electric and hybrid vehicles in China have increased by more than 100%.
The China Association of Automobile Manufacturers says electric cars accounted for 5% of total car sales in 2019 and will reach 18% in 2022.
Of the 27.5 million vehicles sold this year, 5 million will be electric.
China is one of the most polluting countries in the world. China has said that by 2035, the majority of vehicles will be electric and hybrid.
