Business / Auto Policy

New-energy vehicles to get renewed push

By HAO YAN (China Daily) Updated: 2015-09-30 08:00

New-energy vehicles to get renewed push

Visitors check a hybrid new-energy car at an auto show in Changchun, Jilin province. A total of 72,711 new-energy vehicles were sold in the country in the first six months of the year. [Photo/Xinhua]

The central government on Tuesday decided to accelerate the development of low-emission and new-energy vehicles to reinforce its green goals.

The government expected the move would promote healthy restructuring of the auto manufacturing industry and get rid of heavy polluters.

The State Council will re-introduce tax deduction to encourage purchase of cars whose engine is 1.6-liter or below. Taxes on such vehicle purchases will be halved for buyers from Oct 1 and will run till the end of next year.

Zhang Yu, managing director of Automotive Foresight (Shanghai) Co Ltd, a market research firm, said: "Reducing taxes will help stimulate sales of small vehicles."

The government will also keep eyes on the proportions of NEVs among the newly purchased buses and government-funded organizations' cars. Local governments which do not follow the guidelines will see their subsidies on fuel and operating expenses reduced.

Earlier policies required more than 30 percent should be new-energy vehicles among the new purchases.

Local governments have also been urged not to impose restrictions on the use or purchase of new-energy vehicles and remove any such restrictions forthwith.

Gasoline vehicles that fall below the National I Emission Standard and diesel ones below the National III will be weeded out across the nation by 2017, the government said.

Zhang said compulsory and punitive steps are necessary to activate the central government's 30 percent stipulation for new-energy vehicles in fresh purchases. Absence of punitive measures may prompt local governments to scale down funding and purchases of new-energy vehicles.

On Tuesday, a strategic advisory committee led by Vice-Premier Ma Kai recommended development approaches and directions for new-energy vehicles in the "Made-in-China 2025" Key Area Technology Road Map.

The advisory panel has for the first time outlined the energy saving requirements for pure electric and plug-in hybrid electric cars.

A plug-in hybrid electric vehicle when running in hybrid mode should consume 25 percent less fuel than the gasoline cars. A small-size pure electric car should use less than 11.5 kilowatt/hour electricity for every kilometer it runs.

"There have already been a lot of encouraging policies, but the development of new-energy vehicles might still need some tough measures," said Zhang.

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