2 Jun 2010 09:21

China to provide subsidies to electric car buyers

Shanghai. June 2. INTERFAX-CHINA - China will begin providing subsidies to buyers of electric cars as part of its efforts to reduce carbon emissions, according to a new government policy released on June 2.

According document released by the Ministry of Finance, the policy stipulates that private purchasers of electric cars are eligible to receive government subsidies ranging from RMB 3,000 ($439.24) to RMB 60,000 ($8,784.77), depending on the car model. Under the pilot program, Shanghai, Changchun, Shenzhen, Hangzhou and Hefei will be the first cities to institue the subsidy program.

The policy was jointly drafted by the Ministry of Finance (MoF), the Ministry of Science and Technology (MST), the Ministry of Industry and Information Technology (MIIT) and the National Development and Reform Commission (NDRC).

The new subsidies are aimed at both promoting the sales of eco-friendly electric cars and encouraging the production and R&D activities of electric car makers in the country.

Last year, China surpassed the United States to become world's largest automobile market after logging total car sales of 13.64 million.

With automobiles accounting for over 85 percent of gasoline and 20 percent of diesel consumption, China has vowed to accelerate the promotion of electric vehicles in the country over the next few years in an effort to reduce its oil consumption and carbon emissions.