SHANGHAI, China — The Chinese government has asked the local governments of 13 of China's cities to offer subsidies to new-car buyers if they choose hybrid or low-energy-consumption vehicles. The program would be another prong in the central government's major green-vehicle promotion campaign.
The Chinese Ministry of Finance made the announcement on its Web site, saying the subsidies would be a one-time offer. No additional details were offered about the amount or type of subsidy the buyers might expect.
China's public-service sector, including transport, taxi, postal and urban environmental sanitation, will be asked to use fuel-efficient and alternative vehicles, the statement added.
In addition to Shanghai and Beijing, cities to be included are Chongqing, Changchun, Dalian, Hangzhou, Jinan, Wuhan, Shenzhen, Hefei, Changsha, Kunming and Nanchang.
China's government has been strongly encouraging the use and manufacture of alternative-energy vehicles because its fast-growing vehicle population is putting pressure on the government's environmental protection and energy-saving targets. The central government has pledged to spend the equivalent of $1.5 billion in the next three years to help automakers upgrade their technology and develop alternative-energy vehicles.
Overseas carmakers, including Toyota and General Motors, and domestic players such as Chang'an Motor and BYD Automobile, have spent major money on R&D and have recently launched some of the types of fuel-saving vehicles the government has in mind. A total of seven China-made alt-fuel vehicles have been granted production permits, including Toyota's Prius hybrid, the Chang'an Jie Xun hybrid and BYD's F3DM electric hybrid.
But analysts said it will take time for sales of the vehicles to pick up in the current climate of high car prices.
Source : www.edmunds.com (2/2/2009)
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