Subsidies for Alternative Energy Vehicles to be Tightened
According to a government official, China will be releasing new rules that will tighten the subsidies for energy saving vehicles manufactured by local automakers. Cars that have an average fuel consumption of 6.3 liters of gasoline or lower than 100 kilometers can qualify for the subsidy.
The subsidy still remains at 3,000 yuan, and the finance ministry and National Development and Reform Commission will be announcing the change on their official websites. The State Information Center will be conducting research on the consumer acceptance of the electric vehicles to see how they will react and influence their decision to buy alternative energy cars.
There are currently 10,000 alternative energy vehicles in trial use, 1,000 of these vehicles are privately owned. Although auto sales have slowed between 3 to 5 percent this year after the government removed incentives that boosted deliveries, deliveries will still likely reach 19 million units this year.