The plan will promote the use of electric, hybrid and fuel-cell vehicles by public transport operators, taxi companies and postal and rubbish-collection services in Beijing, Shanghai and 11 other cities, Xinhua quoted a finance ministry statement as saying.
Subsidies will be based on the price gap between more energy-efficient cars and trucks and those with traditional engines, Xinhua said. It was not immediately known how many vehicles might be bought.
The central government said earlier this month that it would promote mass production of electric vehicles. Several automakers, expecting such policy support, have initiated plans to produce green vehicles.
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