Subsidies for ‘green’ vehicles extended to 2020
China will extend current subsidies for new energy “green” vehicles from 2015 to 2020, according to published draft rules.
The move is aimed at fighting severe pollution and snarling traffic, and is expected to be a boon to firms such as Warren Buffett-backed BYD Co Ltd, the country’s biggest maker of electric vehicles.
Production of green vehicles in China jumped five-fold during the first 11 months of 2014 compared with 2013, but the industry still lags on Beijing’s goal of putting 5 million new energy vehicles on Chinese roads by 2020.
Subsidies will be granted to buyers of pure electric, highly electrified plug-in hybrid and fuel-cell vehicles, , according to the rules posted on the Ministry of Finance’s website.