China soon to unveil new subsidy program for “new-energy” vehicles

China is expected to unveil its renewed subsidy scheme for the new-energy auto industry in the first half of this year.
Under the new policy there are likely to be 16 grades of subsidy based on the fuel efficiency of a specific model, with the minimum subsidy placed at more than 3,000 yuan (US$485) per vehicle, according to local reports.
Several industry insiders said they believed the new subsidy scheme would include non-plug-in hybrid vehicles as well. Previously, only plug-in hybrid vehicles and pure-electric vehicles were eligible for subsidies from the central government. In addition, more cities are likely to be included in the subsidy program, with China’s ambitious goal of selling 500,000 new-energy vehicles by the end of 2015.
In May 2010, the Ministry of Commerce (MOC) issued a set of interim rules, which governed government subsidies to private new-energy vehicle buyers. This program expired last year.
Over the past two years, only 27,432 new-energy vehicles have been registered under the program, with 23,032 units in the public sector and only 4,400 units for private use, according to the China Association of Automobile Manufacturers (CAAM).