China to Grant Subsidies on 71 Fuel-Efficient Vehicles

BEIJING, July 2 -- China have granted subsidies to 71 fuel-efficient automobile models as part of China's efforts to promote clean vehicles and reduce carbon dioxide emissions, the country's top economic planner National Development and Reform Commission said yesterday.

Vehicles with an engine capacity of 1.6 liters or less, will be able to enjoy a RMB 3,000 subsidy per car after they demonstrated that they can save fuel consumption by 20%, the NDRC said in a statement.

Sixteen Chinese car makers, including BYD Automobile Ltd and Chongqing Changan Automobile Co, will produce the first batch of the vehicles in line with the requirements. More models are expected to qualify for the subsidies in the future.

The subsidies, aiming to popularize the more fuel-efficient vehicles, will enhance their price competitiveness and boost sales.

The government also said it would offer subsidies of as much as RMB 60,000 for plug-in hybrid and electric car makers.