China to subsidize electric car purchases in five cities

Through the program, subsidies of up to 60,000 yuan (8,784 U.S. dollars) will be given to buyers of pure electric vehicles in the five cities chosen for the pilot program, the Ministry of Finance said in a statement on its website.

Buyers of plug-in hybrid cars will receive up to 50,000 yuan in subsidies.

The cities chosen for the pilot program are Shanghai, Changchun, Shenzhen, Hangzhou and Hefei.

China, one of the most aggressive promoters of electric vehicles, is trying to defuse criticism that big EV subsidies favor rich folks who can afford cars over poorer Chinese who help the nation’s severe air pollution problems by still getting around on bikes or public transit.

China is the world’s largest auto market.

Source: Xinhua,