China to further subsidize green vehicles

The Chinese government will set aside US$161-321 million each year to subsidize development of the new-energy vehicle market and research into related technology, Caixin reported, citing an official. Since 2009, more than 20,000 environmentally friendly cars have entered the market under Beijing’s encouragement, and a supply chain for such vehicles has been established, said Zheng Xiaosong, assistant minister of finance. The government is set to continue to promote the use of hybrid buses, having proven to be stable, consume less energy and produce lower greenhouse gas emission, Zheng said. Green buses have already hit roadways in 25 medium and large cities including Shanghai, Beijing and Chongqing. In April, the State Council approved plans promoting the auto industry to build 500,000 new-energy cars by 2015.