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China's plans to eventually ban the sale of new petrol and diesel engines could hurt Australia's multi-billion-dollar car-parts industry, which exports to China.

The group which represents Australian car parts manufacturers says there are benefits and opportunities for local companies. It's even tipping the revival of Australian car makers, because electric cars are easier to assemble.

Either way, as the biggest global market for cars, China's plans to go electric will have world-wide implications for car manufacturers.

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