China mulling subsidies to new energy car buyers

Industry News | Ash | March 9, 2010 at 4:15 pm

For a long time hybrid vehicles have been overpriced in China, but if the government gets its way then it could see the Chinese people being applicable for a range of subsidies for green car purchases. Chinese auto manufacturers have already produced a range of hybrid and electric vehicles, but they have been slow to sell due to high prices. Introducing subsidies for vehicles such as the BYD F3DM and the Chery A4ISG and forthcoming Dongfeng models will no doubt improve their sales record in China, these subsidies will also open the market for imported and domestically made hybrids from joint venture companies in China. Currently only the Toyota Prius is made in China, whilst its nearest competitor the Honda Civic hybrid is imported.

China is considering offering a subsidy of as much as 60,000 yuan ($8,797) to consumers who buy a new energy vehicle, Li Yizhong, minister of Industry And Information Technology, said yesterday.

Giving a reason for the subsidy, Li said green vehicles are expensive because of the huge investment as the technology is still being developed.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

Website - More Posts