China will begin to phase-out the sale of fossil fuel-powered cars in 2019, officials said Thursday, with the introduction of production quotas for "new energy vehicles" in the world's biggest car market.

Producers and importers will need to get a clean energy score, the Ministry of Industry and Information Technology said, and prove that at least 10% of the cars they sell are "new energy vehicles", or NEVs, in order to avoid buying credits from the government or paying steep fines. Companies can also compile credits that can be sold to competitors if they sales and production rates top the minimum threshold.

The move comes on the same day that Toyota Motor Co. (T) , the world's biggest carmaker, announced details of its new electric car venture with Mazda Motor Corp. (MZDAY)  that Toyota president Akio Toyoda hopes to use as a springboard for sales into China.

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