Hangzhou offers subsidies to push sales of electric vehicles

Gasgoo.com (Shanghai February 10) - Citizens of Hangzhou who purchase electric cars may be eligible to receive compensation of up to 123,000 yuan ($18,693.50), according to a report by auto.sina.com.cn.

The grant is primarily funded by the national and provincial governments, which will each provide subsidies of 6,000 yuan ($911.88). In addition, buyers can also receive an additional 3,000 yuan ($455.94) by exchanging their existing gas-powered vehicle.

Electric car buyers are also eligible to receive 0.09 yuan ($0.014) reimbursement on recharging for every kilometer (0.621mi) driven, up to a maximum of 5,400 yuan ($820.69) for the first three years or 60,000 kilometers (37,260mi) driven.

According to the report, Hangzhou plans to reach its target of 20,000 new energy vehicles sold by 2012. In order to reach that goal, the city plans to construct four central battery charging stations, 38 smaller battery replacement stations, 145 battery delivery points and 3500 battery charging posts. The city's goal is that every citizen will have access to a place to charge or replace their vehicle's battery within a one to two kilometers radius.

Hangzhou is already making progress towards its new energy goals with the Zotye 2008EV (pictured below), which began selling in the city this January. The 2008EV marks the first time a pure electric car has been openly sold to the public in China.