Photo by Simon Song

Taxi companies around the world are big fans of electric vehicles. The reasons why are quite obvious. They are able to save a lot of money on gas and lower their maintenance costs. Additionally, electric cars don’t pollute the environment, which is why they are becoming increasingly popular in a lot of countries, especially in China.

The Beijing city government recently announced that it plans to replace all its gas-powered taxis with electric cars. The transition will begin this year, meaning that from now on all newly added or replaced taxis will have to be electric.

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This is a great move made by the Beijing city government, but it is also an expensive one. There are currently over 70,000 taxis in China’s capital and replacing them all will cost around $1.3 billion. The decision also represents a great opportunity for EV manufacturers, who will now compete with each other to try to close a deal with the Beijing authorities.

By launching a fleet of electric taxis, the city officials will try to reduce air pollution in Beijing, which is getting worse every year. But Beijing isn’t the first to do so. Other Chinese cities including Shenzhen and Taiyuan have already announced a similar approach for reducing air pollution.

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