China to offer subsidies for fuel-efficient cars

China plans to offer at least 12 billion yuan (US$1.76 billion) in subsidies over the next two years to promote the purchase of cars with small, fuel-efficient engines as part of its efforts to increase energy efficiency and reduce pollution. The government will offer a subsidy of 3,000 yuan (US$439) for every purchase of a gasoline or diesel sedan that has an engine size of 1.6 liters or lower, and consumes 20% less fuel than current standards, the National Development and Reform Commission (NDRC) said in a statement on its website. NDRC, China’s economic planning agency, said it expects to subsidize more than four million such purchases by 2012. By promoting the sale of smaller-engine, fuel-efficient cars, China would save 750 million liters of fuel and reduce carbon emissions by 3.3 million metric tons by 2012, the statement said. (June 3, 2010)