Gasgoo.com (Shanghai December 4) - The Ministry of Finance, Ministry of Industry and Information Technology and Ministry of Science and Technology's latest list of innovative new energy vehicle technology projects eligible for government aid is currently being reviewed by a panel of experts, the National Business Daily reported today. JAC Motors, Changan Automobile and BYD were among the enterprises listed.
There were five pure electric vehicle programs by JAC, Dongfeng and other manufacturers mentioned in the list. The Ministry of Finance will award grants to the manufacturers after evaluating their projects. 40 percent of the funds will be granted when work on a project begins, while the remaining portion will be awarded following mid-term and final status evaluations. The subsidies will help aid the development of these programs. "These subsidies will be able to guide development in the new energy vehicle industry," a spokesperson from BAIC commented.
Following the announcement, the listed manufacturers saw their stock prices jump significantly. JAC's stock value increased 2.84 percent, while stocks for Changan, Great Wall, FAW Car and SAIC also rose over two percent. Although the above manufacturers' performance caught the attention of many investment groups, Cinda Securities Automotive Industry Analyst Xing Haizhi expressed his concerns. He cites the small scope of the new energy market in China as one of the reasons why he believes further stock growth will be hard to maintain.
