China to subsidize purchases of new energy cars

The Chinese government may subsidize purchases of new energy vehicles by as much as 60,000 yuan (US$8,788.18), said Li Yizhong, head of the Ministry of Industry and Information Technology, the Shanghai Daily reported. Market prices for these types of vehicles are approximately 50% more than gasoline-powered models, according to industry analysts. China last year launched trial operations of new energy vehicles in 13 cities that included Beijing, Shanghai and Shenzhen. Public service departments were able to receive subsidies of up to 420,000 yuan (US$61,517) for hybrid buses and up to 600,000 yuan (US$87,881) for electric and fuel cell buses. The Chinese government has said that the country will have 500,000 green cars on the streets within three years and that it will strive to improve the infrastructure for these vehicles. (March 10, 2010)