Sales of electric vehicles, plug-in hybrids and other new-energy cars and light trucks are expected to see sales growth of around 40 percent in 2018, an industry association said.

Sales of NEVs will "definitely" top 1 million vehicles this year, one official from the China Association of Automobile Manufacturers said Thursday.

China's finance ministry said in December it will extend a tax rebate on purchases of NEVs until the end of 2020, a boost for hybrid and EV makers amid a shift by policy-makers away from the traditional internal combustion engine.

China government officials have adopted the change in policy to combat smog and pollution in the country's biggest cities.