China to extend subsidies for new energy cars

Officials from China’s auto industry are seeking to expand a subsidy program for electric cars, across 25 Chinese cities. During the on-going two sessions in Beijing, China’s Minister of Industry and Information Technology, Miao Wei, announced that the subsidies for new energy cars will be extended by three years.

China has started promoting new energy cars in 2009, with public transport used as a pilot zone. As of last year, there were nearly 28,000 new energy cars in 25 Chinese cities, and 80 percent of them were buses.

China’s Minister of Industry and Information Technology, Miao Wei noted that the central government will step up investment in clean energy cars and extend subsidies for the promotion of electric vehicles.

Miao said, «It should not be a problem to extend the policy. It’s good news that more and more private buyers are opting for new energy cars.»

Meanwhile, the new electric-car subsidies will be made available in more cities and will be expanded more cover other types of fuel-efficient cars, including hybrid vehicles.

Wan Gang, CPPCC member, Ministry of Science & Technology, said, «We should make more efforts in the area of technology innovation and we also need to open up new markets, including buses and private cars.»

Subsidies are currently offered to private buyers of new energy cars, but analysts say more coordinated policy action will be needed in the long run so as to encourage more private buyers in the future.

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