China grants subsidies for private hybrid cars

China will give 43,000 yuan ($6,300) in subsidies to buyers of hybrid car buyers in the southwestern city of Chongqing, the first state initiative for private cars, the Shanghai Securities News said on Friday.

The subsidy, from the local government, will be given for the Jiexun brand hybrid sedan made by Chongqing Changan Automobile Co (000625.SZ), the newspaper said.

According to Reuters calculations, the subsidy, including exemption on 7,000 yuan of road fees for three years, is equivalent to a 31 percent discount for the hybrid sedan.

The hybrid version of Jiexun, priced at 140,000 yuan, has received some pre-orders and will hit the market as early as June, the newspaper said, citing Ren Yong, deputy chief of Changan's clean energy auto subsidiary unit.

China pledged in February to subsidise purchases of clean-energy vehicles for public fleets in 13 cities as it moves to help its auto industry develop green technologies.

Under the trial scheme covering public transport operators, taxi firms and postal and sanitary services in cities such as Beijing and Shanghai will get rebates of 28,000 yuan to 250,000 yuan for green vehicles, including electric, hybrid and fuel-cell vehicles.

In late 2008, the Chongqing government had ordered 10 Jiexun from Changan and set a target to increase the number of hybrid vehicles in the city's public sector to 1,000 units in 3 years.