BYD Chairman urges gov't to subsidize new energy vehicles

Shanghai, September 8 (Gasgoo.com) The chairman of BYD Co urged the Chinese government to subsidize private purchases of all-electric battery cars and other "new energy" vehicles, the Wall Street Journal (WSJ) reports on Tuesday.

Mr Wang Chuanfu said at an industry conference on Sunday that the Chinese automotive industry is "at a critical make-or-break juncture in our effort" to mass-produce electric and plug-in hybrid vehicles, and "the government needs to play a key role and help us reduce their cost, especially for private buyers" so as to fuel demand.

He added that a lack of consumer incentives and subsidies has kept BYD from making a plug-in hybrid car available for private buyers.

Mr. Wang also called for rebates, tax cuts, and policies to pave the way for more taxi companies to use electric cabs, among other measures.

Wan Gang, the minister of science and technology, expressed his support on the matter, stating that China has adequate deposits of lithium and other rare-earth metals and therefore must encourage research and development (R&D) of alternative-fuel technologies as "a new source of growth" for the local auto industry.