China Offers 6 Billion Yuan for New Energy Car subsidies image

China’s government offered 6 billion yuan ($949 million)to subsidise consumer purchase for fuel-saving vehicles.

In June 2010 Beijing offered a 3, 000 yuan rebate for consumer purchases of small, fuel-efficient cars, but never mentioned the total costs of the subsidy. In September 2011 the government made the subsidy available only for cars with a 1.6-liter engine or smaller, that would consume 6.3 liters of gas or less per 100 km. Subsidies of up to 60,000 yuan were offered for each electric car sold.

Subsidies will be offered to the State Grid Corp of China and China Southern Power Grid, and electric car charging stations will be installed in parking areas. Owners of new energy cars will benefit from preferential policies for paying the parking fees, road tolls and charging fees. Automakers of new energy cars will also receive subsidies only if they apply new technologies to the production. Currently production of EV charging stations is focused in East China, South China and North China, since these are the areas where electric vehicles are promoted rapidly.