The Chinese government is set to introduce a pilot program in which the purchase of electric and hybrid cars will be subsidised. This is in line with China’s plans to cut emissions in what is now the world’s largest car market.
Applicable in Shanghai, Shenzhen, Hangzhou, Hefei and Changchun, plug-in hybrid cars are entitled to a subsidy of 50,000 yuan, which is about $7,320. Maximum subsidy for a full electric car will be 60,000 yuan ($8,787) according to China’s Ministry of Finance.
Instead of handing out cash to consumers, the money goes to carmakers, who would then lower the prices of eco models accordingly. Besides that, China will introduce nationwide subsidies of 3,000 yuan for cars with 1.6-litre engines or smaller that consume 20% less fuel than current standards.
It wasn’t mentioned what the “current standards” are, but this proactive measure to cut emissions and lower fuel consumption is a nudge to carmakers to produce cleaner vehicles. And they’re responding. SAIC plans to roll out its first hybrid car this year, while car and battery maker BYD started retail sales of its plug-in hybrid F3DM in March.
What about charging infrastructure? The Government will allocate unspecified funding for the construction of charging stations and battery recovery networks in the pilot cities.
Last year, China’s tax incentives for small cars and subsidies for vehicle buyers in rural areas helped domestic vehicle sales surge 46% to 13.6 million units, even as sales in other parts of the world slumped. The impact of this green car subsidy will not have the same short term effect, but it’s a good move nonetheless.
Emissions has of course become a serious problem in major Chinese cities and they’ve had to implement certain policies such as an odd-even based alternate day car ban based on a car’s numberplate during the recent Olympic games in order to cut down on the smog.
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when will malaysia do that…
After Proton lauching their first hybrid.
Has M’sia gov sent a letter of protest to China? For giving stupid ideas for the m’sian ppl that something like this can be done. Spoil the market only… ;-)
Good! At least my lungs won’t die whenever I step out onto the streets in China.
China has big O&G companies but it’s good that they can see the bigger picture of reducing usage and pollution.
I can bet my money our 1People First gov will do the opposite & impose maximum tax on any kind of car that smell foreign to their snotty nose^^
usually i dont really care about comments from the others because unlike Mao or Idid Amin or Caucescu, i have no problem with people voicing their opinions. but i am so incensed by ur comment that i decided to do some 5 minutes community-service-fact-correction on u.
one is u mentioned absolute nothing in relation to the posting news that China is making effort to subsidize green cars. second is ‘smell foreign’ cars such as those Kias, Mercedeses, still enjoy lower tax than what u think. or if u really do the thinking, i pretty sure u know RRP for CKD and CBU models are very different isnt it. third is, u like it or not protectionism exist. incase of u are totally ignorant of histories and have absolutely no knowledge whatsoever, please do some Google-ing before u ever think of bashing someone.
i am not 1People First gov man. and I am all for cheap car price. i own a foreign make car. but i dont moan like u. car not a big thing for me, but i know what i want.
u want it, u’ve to afford it
Currently our G won’t do that. It’ll will hurt P1 and P2.
p1 and p2 are a bit (or should i say, very) late in developing their energy saving models. or energy efficiency models. how come?
50, 000 yuan = RM 25, 000 for hybrid
60, 000 yuan = RM 30, 000 for EV
3, 000 yuan = RM 1, 500 for 1.6 liter car and smaller
bg amount for subsidy. So now I know why car maker in China like Chery, BYD, Geely, Great Wall, Brilliance etc develop an alternative energy car. I thk Malaysia must follow China action in saving our planet. Also if action taken, we also can save our oil and gas subsidy. One more thing, remove higher duty tax especially for hybrid car, EV car and smaller engine car
” Applicable in Shanghai, Shenzhen, Hangzhou, Hefei and Changchun, plug-in hybrid cars are entitled to a subsidy of 50,000 yuan, which is about $7,320. Maximum subsidy for a full electric car will be 60,000 yuan ($8,787) according to China’s Ministry of Finance.
Instead of handing out cash to consumers, the money goes to carmakers, who would then lower the prices of eco models accordingly. Besides that, China will introduce nationwide subsidies of 3,000 yuan for cars with 1.6-litre engines or smaller that consume 20% less fuel than current standards. “
well done china! malaysia, plz buck up..
warren buffett has a stake in BYD, I bet he saw the roadmap for electricity cars in China and perhaps the world.
Electricity cars will not reduce CO2 unless they migrate to nuclear energy, I don’t see a difference when these electric cars draw their electricity from the normal elec grid, they are simply shifting the source of CO2 emission and pollution from the mini power plant in a car to the bigger coal power plant.
in one way they reduce it by great numbers.
but yeah, a much more complete green cycle would be the generation of electricity must be clean of any carbon burning.
could he seen the real buying power of china? instead of the green thing?
i mean, everyone going china these days. well, 1-2 might still selling in middle east but in very low, exclusive numbers.
the boom of green vehicles must been started by the ‘green’ of china!
In Malaysia, citizen gives car subsidies to government.
migrate to china?
Not easy.
Alternative energy for personal transport is not the only answer. If u want to transport a lot of people around with maximum efficiency then subway is best. Actually, trains running off the electricity grid which runs on nuclear energy is the best way forward. Chung Ju Yung and Park Chung – hee saw this way back in 1978, (founder of Hyundai group and President of South Korea respectively). Not well publicised but Hyundai also makes subway trains through their subsidiary Hyundai ROTEM. This will cut emissions in the long run. Whenever I visit South Korea i can go jogging because the air is very clean compared to Kuala Lumpur City Centre. I wonder if poor air quality in our city can be blamed on indonesia? I think it is also due to our high number of cars. In fact, based on our GDP our car ownership (per capita) is similar to South Korea, which has 3-4 times our GDP. Also Moving on to fuel efficiency, do hybrid cars actually offer better efficiency than some equivalent diesel models ? I’m not so sure. When i told a Korean policy maker about our local situation, he dryly replied, ” Either we’re really smart or you guys are really dumb, you decide.”