China is set to release details on subsidies for the private purchase of "new energy" vehicles as early as the end of this month, according to reports from inside the Chinese government.
The plan is likely to include financial support provided to auto companies, not individual buyers, that lease environmentally friendly vehicles, which is in line with what has been speculated.
The subsidies would be pegged to the fuel efficiency of each vehicle, with the highest amounts paid to electric cars, followed by hybrid cars that offer at least a 40 percent improvement in fuel consumption.
China now offers up to $8,800 in subsidies to government departments for the purchase of new energy vehicles.
Inside Line says: Chinese government clearly means to put "new energy" into the mainstream in the country.
