China may tighten criteria for future car subsidies

China is said to be looking at restricting subsidies received by automakers for producing fuel efficient cars. Currently, automakers receive 3,000 yuan (US$469) for each car sold that has a fuel efficiency rating of less than 6.9 liters per 100 kilometers. The cars must also have an engine capacity of no more than 1.6 liters. Currently, 500 vehicle models qualify for the subsidy. There’s speculation that the government will raise the criteria to 6.2 liters per 100 kilometers. (August 22, 2011)