Policy shot in the arm for new-energy vehicles
Analysts predict better times ahead after mainland governments are told to lift purchases of electric and hybrid vehicles to 30pc of mix by 2016
Beijing's move to ensure that at least 30 per cent of new government vehicles on the mainland are powered by alternative energy by 2016 is expected to boost a new-energy car market that has been losing steam of late because of high prices and a lack of charging stations.
Under the policy, at least 15 per cent of new vehicles would have to run on clean energy by this year in heavily polluted areas such as Beijing, Tianjin, the Pearl River Delta and the Yangtze River Delta.
The directive also says that no more than 180,000 yuan (HK$224,750) can be spent on an alternative-energy vehicle by government departments, after deducting the subsidies provided by the Ministry of Finance.
The government started providing a 120,000 yuan subsidy for the purchase of electric or plug-in hybrid cars a few years ago.
"The new policy, along with other incentives launched earlier, will definitely help in a breakthrough for the new-energy vehicle market this year," said Zhang Zhiyong, an independent industry observer, referring to the waiver of the 10 per cent purchase tax for new-energy vehicles from September 1 until the end of 2017.
"This is not the first measure by the government to stimulate the industry and it won't be the last."