Hainan launches legislative research in free trade port to promote phase-out of fuel-powered vehicles

To advance its 2030 goal of phasing out sales of fuel-powered vehicles, South China's Hainan Province plans to initiate legislative research on regulations to promote new-energy vehicle (NEV) development in its free trade port, demonstrating its commitment to a clean energy transition.

The Hainan provincial government is seeking third-party institutions to conduct legislative research on regulations to promote NEVs within the Hainan Free Trade Port, a representative from Hainan Provincial Department of Industry and Information Technology told the Global Times on Tuesday.

The project involves evaluating the current state of NEV development in Hainan, identifying key challenges and needs, and proposing practical solutions. It also includes preparing draft regulations for review.

Moving from planning to legislative research sends a strong message about Hainan's commitment to developing NEVs - this is a "must", the representative said.

Hainan's initiative to phase out fuel-powered vehicles and strengthen regulations on promoting the development of NEVs plays a crucial role in advancing the green transition, experts said.

Hainan is taking the lead in phasing out fuel vehicles because the scale of its auto industry is relatively small. Unlike other provinces with large-scale manufacturing and supply chains, Hainan is well suited to this transition, making it easier to implement, Cui Dongshu, secretary-general of the China Passenger Car Association, told the Global Times on Tuesday.

"This move builds on the full electrification strategy and serves as a valuable exploration of tax reform for NEVs in Hainan, setting a strong example nationwide," Cui said.

Hainan has promoted the adoption of 63,000 NEVs in the first seven months of the year, according to the Hainan New Energy Vehicle Promotion Center. During this period, NEVs accounted for 53.9 percent of all newly registered vehicles in the province. By the end of July, the total number of NEVs in Hainan had reached 354,000, representing 17 percent of the total vehicle fleet.