China to subsidise “green” vehicles

In a trial scheme, the Chinese government will subsidise purchases of clean-energy vehicles for public fleets in 13 cities, Reuters reported, citing the Xinhua news agency. The move is designed to help China’s auto industry to develop green technology and to ride out the economic slump.


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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