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Debate on green car subsidy

By Hu Yang (chinadaily.com.cn)
Updated: 2010-06-08 17:30
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Some auto-industry veterans said subsidies for fuel-efficient vehicles should be given directly to consumers, instead of being handed to manufactures, National Business Daily reported on June 8.

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The government recently selected Shanghai, Shenzhen, Hangzhou, Changchun and Hefei to pilot an incentive program for green vehicles. The incentives, which are 50,000 to 60,000 yuan ($7,322.36 to $8,786.83) per car, will go to automakers, who are supposed to lower the actual purchase prices on relevant models accordingly.

Du Fangci, an industry veteran, said that the implementation process is not transparent enough to make consumers actually feel the subsidy's benefit.