BYD encouraged by gov't green car commitment

Build Your Dreams (BYD) Auto Chief Wang Chuanfu has welcomed the Chinese government’s policy of subsidizing green cars that will be implemented in the second half of this year.

Speaking to the South China Morning Post, Chuanfu stated that sales of green cars will be lifted if the government’s policy can extend to individual customers. He believes that the government should subsidise as much as 30,000 Yuan for the cost of each car that runs on an alternative powertrain in an effort to encourage sales.

The Chinese government has agreed to a series of measures intended to boost auto market demand. It has already announced a tax cut of five per cent for vehicles with engines below 1.6 litres and offers subsidies for rural residents buying greener cars. Now its latest stimulus package involves a $1.5billion research subsidy plan over three years for car manufacturers to improve their electric vehicle technology.

The aim for China is to produce 500,000 new energy vehicles this year and increase the sales of the cars which currently account for around five per cent of overall market sales. Chinese automakers are expected to narrow the gap to their foreign counterparts.

Several manufacturers have already announced plans to make green cars while BYD Auto and Chery Auto have launched green vehicles of their own.

BYD began selling its F3DM hybrid electric car in December last year. It is capable of travelling 62 miles on electric power only and the company plans to release two more electric models before the end of 2009.

Chery Auto meanwhile rolled out its own plug-in electric car model, the Chery S18, in February this year with a 150km range on a single charge.