China to invest 15 billion dollars in green cars

Yahoo News 4 Aug 10;

SHANGHAI (AFP) – China plans to invest more than 100 billion yuan (14.8 billion dollars) over the next decade to boost the development of energy-saving vehicles, state media reported Wednesday.

The country aims to become the world's top market for green autos with annual sales and production of more than 15 million units, the Shanghai Securities News said, citing an industry ministry proposal.

Of the subsidies 50 billion yuan will be used to support development of energy-efficiency and alternative energy technologies, the report said

The draft plan is likely to be submitted to the State Council, or cabinet, for approval by the end of the month, the newspaper said.

China said in June it would subsidise purchases of alternative energy vehicles in five cities including Shanghai on a trial basis amid efforts to reduce emissions, save energy and spur the development of green technology.

It has also announced plans to offer subsidies of 3,000 yuan for purchases of cars that have 1.6 litre or smaller engines and consume 20 percent less fuel than current standards.

China To Invest $15 Billion Over 10 years For Green Autos: Paper
Fang Yan and Ken Wills PlanetArk 5 Aug 10;

The Chinese government will invest more than 100 billion yuan ($14.8 billion) to subsidize its fledgling environmentally friendly car industry over the next 10 years, the Shanghai Securities News reported on Wednesday.

According to a draft plan worked out by the Ministry of Industry and Information Technology, 60 billion yuan will be invested in the development of energy-saving technologies, the newspaper said, citing unnamed sources.

The remainder is earmarked to fund the construction of infrastructure to support energy-saving vehicles in select cities, among other projects, it said.

The government also wants to foster three to five major makers of energy-efficient cars and two to three parts makers that can supply them, it added.

Beijing unveiled plans in June to offer nationwide subsidies of 3,000 yuan for purchases of cars with 1.6 liter engines or smaller and that consume 20 percent less fuel than current standards.

The programme is estimated to cover more than 4 million such vehicles by 2012, the National Development and Reform Commission, the country's top economic planner, said.

China will also hand out subsidies to buyers of electric cars and plug-in hybrid models in five select cities, including Shanghai.

The move is aimed at raising consumer's interest in cars that use less energy and create less pollution than traditional models, but it is unlikely to jump-start the fledgling industry in the short term due to high battery costs as well as inadequate charging and maintenance networks in the country, analysts said.