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China to extend subsidy programme for electric cars past 2015

Published on Feb 8, 2014 4:57 PM
A man walking past a billboard-sized photo of the Tesla Model S car, outside the boarded-up Tesla's first China flagship showroom at an office-shopping complex in Beijing in this August 23, 2013 file photo. In an unusual blog post, the firm detailed the lower-than-expected 734,000 yuan China price tag for its high-end Model S electric car. -- FILE PHOTO: REUTERS

BEIJING (Reuters) - China's Finance Ministry said on Saturday it will extend a programme of subsidies for buyers of electric-powered vehicles after the current subsidy regime, part of efforts to combat pollution in cities, expires in 2015.

The existing subsidies will be phased out by 2015 as planned, with a new regime to take effect after that date "to preserve policy continuity", the ministry said in a statement on its website. Details of the new subsidies would follow at an unspecified date.

The subsidies were designed to help China meet a goal of putting half a million new-energy vehicles, defined as all-electric battery vehicles and heavily electrified "near all-electric" plug-in hybrids, on the road by 2015 and five million by 2020.

Pollution in cities, in part caused by an explosion in car sales in recent years, is a hot-button issue for China's leaders, and several measures have been introduced, including curbs on sales of petrol-engined vehicles.

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