Despite an investment on clean technology, China continues to battle poor air and water quality as one of the world's most polluted nations.
The country's economy minister has warned that carmakers in Europe's powerhouse economy needed to invest billions in electric car technology to avoid losing out to Asian competitors.
The sale of new hybrid vehicles that have an electric motor combined with a petrol or diesel engine would also end as part of a plan to clean up air pollution.
Volkswagen proposed spending $120 million on more than 400 highways and community EV charging stations by 2019 to atone for secretly installing software in diesel vehicles that allowed them to emit excess pollution.
A new research report shows that electric vehicles could account for two-thirds of all cars on the road by 2030 in wealthy cities such as London and Singapore due to stricter emissions regulation.
Germany will launch new incentive scheme to increase electric car sales by the end of the decade.
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