China Backs Green Motoring

As the number of car owners increases in China, it is becoming more difficult to reduce the effect on the environment and achieve figures set for saving energy.

The Chinese government has therefore promised to make $146 billion, approximately 10 billion Yuan, available over the coming three years to car manufacturers, in order for them to design vehicles which will consume alternative fuels.

In addition, car buyers in China will be able to benefit from some financial support in return for choosing models which use alternative fuels or are fuel efficient.

It is anticipated that vehicles in public service, such as taxis, postal, buses, and sanitation, will also be affected, since the government is promoting the use of such models.

This will apply to electric battery, fuel cell and hybrid models.

However no further details are available yet. This information is on a website of the Ministry of Finance.

The government is expecting that Shanghai and Beijing as well as Shenzhen, Changchun, Nanchang, Hefei, Chongqing, Wuhan, Dalian, Changsha, Hangzhou, Kunming and Changsha will participate in the scheme.

Chinese manufacturers have received permits for seven alternative energy models, which include BYD’s electric hybrid, the F3DM, as well as hybrids from Chang’an, Jie Xun and Toyota, the Prius.

From outside China General Motors and Toyota have invested heavily in R&D to bring to the market energy saving models.

However, experts say that, since prices of cars are high still, the sale of these vehicles needs more time to increase.