Subsidy will spur green car sales
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A government subsidy for vehicles that burn less fuel will help spur vehicle sales by more than 4 million units by 2012, the National Development and Reform Commission said yesterday.
China is to offer 3,000 yuan (US$439) to consumers who buy energy efficient cars, including gasoline and diesel cars with an engine capacity of 1.6 liters or less that consume 20 percent less fuel than current models.
The commission estimated the scheme would drive vehicle sales valued at more than 400 billion yuan by 2012, help cut carbon dioxide emissions by 3.3 million tons and save 750 million liters in fuel.
The auto industry is the latest industry to be given incentives as China, the world's largest auto market, is keen on green vehicles to reduce pollution and save energy.
China also launched a trial operation to offer as much as 50,000 yuan for plug-in hybrids and 60,000 yuan for battery-powered electric cars in five cities.
Industrial analysts said the stimulus would encourage car makers to invest in accelerating commercialization of green cars.
"Key components of electric cars such as batteries and power bases are now already have the feasibility for adoption," auto analyst Luo Jinling said.
"China wants to put electric cars on top priority as it eyes to leapfrog international rivals in green car development."
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