Tuesday 1 June 2010

China to Subsidize Alternative Energy Car Purchases


June 1 (Bloomberg) -- China is subsidizing alternative- energy cars in five cities to increase their attractiveness for buyers to reduce reliance on fossil fuels and improve air quality.
The government will provide as much as 50,000 yuan ($7,320) for purchases of plug-in hybrid models, which run partly on gasoline, and as much as 60,000 yuan for cars powered only by batteries, a statement on the Ministry of Finance’s website said today. Car buyers in Shanghai, Changchun, Shenzhen, Hangzhou and Hefei are eligible for the subsidies on a trial basis.
China, which became the world’s biggest car market last year, aims to increase the annual production capacity of alternative-energy vehicles to half a million units by 2011 as part of efforts to cut oil imports and rein in pollution.
“Government funding is a very strong factor in helping alternative energy car market growth, but this is only the first step in getting there,” Jacob George, China managing director at JD Power & Associates, the marketing information company, said in an interview today. “It’s also the investment in infrastructure to increase the receptivity of consumers.”

Read this article @ http://www.evhub.in/news/35

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