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New Energy Auto Demonstration


It is reported from a new energy auto meeting jointly held on February 17, 2009 by the Ministry of Finance, Ministry of Science and Technology, State Development and Reform Commission, and Ministry of Industry and Information Technology, that China will stage new energy auto pilot projects in 14 cities, including Beijing, Shanghai, Chongqing, and Shenzhen.

In an interim document on funding new energy auto pilot projects jointly issued on January 23, 2009 by the Ministry of Finance and Ministry of Science and Technology, it is stipulated that the central government will secure a bullet subsidy to the buyer of energy efficient or new energy autos, including hybrid, electric, and fuel battery cars in the cities where pilot projects have been put in place. The amount of the subsidy will be determined in line with a range of factors, including the base price differences between traditional cars and new energy cars, scale, and applicable technologies. A low emission or hybrid car buyer can be subsidized in a range from RMB 4,000 to RMB 420,000, depending on the type and energy efficiency of the cars, while an electric car or fuel battery car buyer may enjoy a government subsidy from RMB 60,000 to RMB 600, 000. The document also asks the local treasury to secure corresponding funds to support the efforts.

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