China to extend subsidies for energy-efficient cars

China will extend subsidies for energy-efficient cars and new energy cars throughout 2011, as part of China’s aim to conserve energy and reduce emissions, the Ministry of Finance said. The statement posted on the ministry’s website did not provide details on the subsidies. Earlier, the government said the tax break would end, with the rate for smaller cars returning to 10%. In 2010, China provided a subsidy of 3,000 yuan (US$455) for each consumer who bought selected vehicles with engines of 1.6 liters or smaller. That subsidy, along with a tax break that reduced the usual 10% sales tax on vehicles to 7.5% in 2010 and 5% in 2009, helped drive sales of smaller cars in China. (December 31, 2010)