Beijing subsidizes energy-saving cars under new standards

There will be 30,000 new energy vehicles on Beijing’s roads by 2012, with each vehicle to be subsidized by up to CNY120,000 (US$18,803) by the local and national government. China is the largest auto market by sales in the world. As early as June 1, 2010, the government released a circular that kicked off trial operations of its subsidy policies concerning individual purchases of “green” cars in five cities, namely Shanghai, Changchun, Shenzhen, Hangzhou, and Hefei. The subsidies were fixed at a maximum of CNY60,000 (US$9,401) at that time. On October 1, 2011, the country’s new energy-saving vehicle subsidy policies took effect, which required vehicles to meet higher standards to qualify for subsidies. The vehicles must consume a maximum average of 6.9 liters of fuel per 100 kilometers. The subsidy earmarked for each vehicle is CNY3,000 (US$470). Of the models registered on the current subsidized energy-saving car list, only 25% can meet these new requirements. According to Ouyang Ming, a professor with Tsinghua University and head of the expert team for the state 863 energy-saving and new energy vehicle project, the year 2020 will be a turning point. Before 2020, gasoline-powered vehicles will continue to rise. After 2020, however, annual sales of plug-in hybrid, pure electric and fuel cell vehicles will reach nearly 18 million units around the globe, he said. (September 9, 2011)