Great Wall

February 10, 2009

China Says It Will Offer Subsidies to Buyers of Hybrid Cars, Trucks and Buses

China has taken steps in recent years to change its reputation as a mass polluter to an environmentally sensitive country.

Its efforts started with a massive Beijing clean-up operation for the Olympics, followed by a $175 billion countrywide clean-up and the closure of some particularly dirty coal power plants.

Soon the country will offer subsidies to the residents and businesses of 13 large cities, including Beijing and Shanghai, who purchase hybrid cars, trucks and buses, or vehicles that run on electricity, liquefied petroleum gas or compressed natural gas.

If the subsidy program succeeds, it might be extended to the rest of China.

Although the Toyota Prius, Honda Civic Hybrid and the domestically produced and recently released BYD F3DM are available in China, fewer than a 1,000 hybrids cars were sold in 2008.

That number will likely change as China produces more hybrids, which are much less expensive than the Japanese hybrids. The size of the subsidies have yet to be announced.

So far, only two Chinese carmakers - Dongfeng Motor and Great Wall Motor (its Kunna EV is pictured) - have announced plans to make electric or plug-in hybrid vehicles.