The Chinese authorities have renewed a subsidy program for alternative-energy vehicles such as electric cars, though hybrid vehicles have been excluded, in a bid to reduce air pollution levels in its major cities, as indicated in a joint statement issued by China's National Development and Reform Commission (NDRC) together with the country's ministries of finance, science and industry.
Accordingly, the Chinese government will provide up to RMB 60,000 towards purchases of electric passenger vehicles and up to RMB 0.5 million for purchases of electric buses. Fuel-cell vehicles powered by hydrogen have this time also been included in the subsidy program.
In addition, alternative-energy vehicles are to account for no less than 30 percent of new vehicle purchases by government agencies and public institutions. China aims to put five million alternative-energy vehicles on its roads by 2020.