Green vehicles to get subsidies until 2020

The government will give subsidies for new energy "green" vehicles until 2020, according to draft rules published on Tuesday, extending the current incentive scheme, which expires at the end of 2015.

The policy represents China's latest effort to fight severe pollution and snarling traffic and is a boon to firms such as Warren Buffett-backed BYD Co Ltd, the country's biggest maker of electric vehicles.

Subsidies will be granted to buyers of pure electric, highly electrified plug-in hybrid and fuel-cell vehicles, with the amount of subsidies gradually scaled down during the period from 2016 to 2020, according to the draft rules posted on the Ministry of Finance's website.