China to set stricter standards for subsidies

Su Bo, vice minister of Industry and Information Technology, said that China will set stricter standards as it continues to grant subsidies to carmakers involved in the production of energy-efficient vehicles. China’s auto output and sales both went past the 18 million unit projection in 2010. Auto gasoline and diesel consumption comprise 65% of the country’s current total. But Su said that the automobile industry is not expected to maintain the strong growth it showed in the past because of several limiting factors. The industry will thus focus on the development of new energy and energy-efficient vehicles, which the government predicts will become an “irresistible trend.” China gives a subsidy of 3,000 yuan (US$468.75) for vehicles that have engines of 1.6 liters or smaller and consume 6.9 liters of fuel for every100 km. (September 6, 2011)