Tesla Model S-09

You’ve read about China’s move to give new-energy vehicles (NEVs) a boost by waiving a 10% sales tax, now the country has instructed government officials to use more electric and plug-in hybrid cars. This is part of a drive to cut pollution by putting five million NEVs on the road by 2020, Automotive News China reports.

NEVs (eletric, plug-in hybrid or fuel cell) must account for at least 30% of all cars or vans purchased annually by central government agencies and some city governments over the next three years, with the proportion set to rise after that, the National Government Office Administration said.

It’s unlikely to be the Tesla above or BMW’s i cars, though. President Xi Jinping urged government agencies to buy domestic brands, so companies such as local EV pioneer BYD and SAIC Motor Corp stand to gain. Government agencies will be offered subsidies to buy new-energy vehicles, while government offices are required to build charging stations and improve other infrastructure.

Last week, China announced that NEVs will be excluded from a 10% sales tax from September 1, 2014 till the end of 2017. The tax waiver also applies to imported EVs, so companies like Tesla Motors, BMW and Volkswagen stand to benefit from it.