(Yicai Global) Aug. 22 -- China, the world's largest auto market, is to experiment with zones for new energy vehicles to tackle the massive resource, energy and environmental issues caused by the huge volume of cars on the road.

If successful, the country will consider phasing out fossil fuel vehicles altogether, the Ministry of Industry and Information Technology said in a document released today.

The NEV-only zones will be in places where conditions permit and the authorities will also do trials to replace gas-guzzling taxis and buses with eco-friendly ones in urban areas. Should the trials work, depending on technological progress and the actual development of the auto industry, the ministry will then work out a schedule for regular fuel vehicles to exit the market.

In 2017, China initiated a study into a timetable for banning fossil fuel vehicles, but no further information was released after that.

Together with the country's top economic planner, the National Development and Reform Commission, MIIT is analyzing the production costs, demand as well as the potential energy savings and lower emissions of both fossil fuel vehicles and NEVs, the document said.

By accelerating the development of eco-friendly and new energy vehicles, this will ease pressure on energy resources and the environment, allow the upgrading and transformation of the auto industry and foster new growth areas in the economy, the ministry said.