China to subsidize sales of green vehicles in cities

Shanghai, December 10 (Gasgoo.com) In an effort to promote eco-friendly, fuel-efficient auto models, the Chinese government will subsidize sales of green vehicles in five cities selected for a pilot program, Reuters reported today.

China would offer rebates to private first-time buyers of green cars, a statement on the main government website (www.gov.cn) said yesterday. The pilot scheme will be expanded to subsidize the purchase of clean-energy vehicles for public transportation fleets in 13 to 20 cities.

The trial program was first announced in February to promote the use of electric, hybrid and fuel-cell vehicles by public transportation operators, taxi firms and postal and sanitary services.

Subsidies will be based on the price gap between more energy-efficient vehicles and conventional engine-powered ones, with the sum running up to 600,000 yuan ($87,880) for fuel cell-powered large commercial buses.

Many Chinese automakers have unveiled their self-developed electric or hybrid models. BYD Co., 10% owned by U.S. billionaire investor Warren Buffett's Berkshire Hathaway Inc., is a leader in this field.

China will also continue to subsidize rural buyers of low-emission vehicles and those who trade in their polluting vehicles for cleaner ones, as part of the incentives to boost the auto market.