Policies of Subsidies for new energy

　　May 18, SOHU AUTO has informed by sources that the rules of the subsidies for private purchase of new energy vehicles (short for “Rules”) have already been countersigned by relevant ministries and is expected to be introduced later this month.

　　Policies on subsidies for new energy vehicles can be divided into three categories.

　　The first category is the “energy-saving cars”. Hybrid models can not be charged externally will also be classified as “energy saving car”, for which the subsidy is 3,000 uniformly.

　　The second is the “plug-in electric vehicles”, that is pure electric plug-in cars, for which the maximum subsidy can reach 50,000 Yuan.

　　The third is “pure electric cars”, for which the maximum subsidy is 60,000 Yuan.

　　Plug-in electric vehicles and pure electric vehicles with longer mileage can get higher subsidy. The level of subsidies depends on the actual performance of the battery.

　　In addition, as for the technological specifications for these three types of car, RULES will have specific requirements. Besides, as the standards are only for private passenger cars, the commercial vehicles will continuously apply the rules from Interim Measures for financial subsidies for demonstration and promotion of energy-saving and new energy vehicles.

　　Recently it has been reported that the subsidies for purchase of new energy vehicles will be given to corporations rather than consumers. In response, the source confirmed the subsidies will still be given to the terminal.

　　Pure electric cars get highest benefits

　　Subsidy standards for hybrids, plug-in electric vehicles and pure electric vehicles are different, according to RULES. In this regard, the source believes that the support for private purchase of hybrid vehicles, which are the key new energy automotive products introduced by the Joint-venture brands and foreign brands currently is not strong while some electric car models of self-owned brands get highest benefits, which reflects a kind of tendency of the policy.

　　Earlier, Zhang Shulin, the chief consultant from China Automotive Technology and Research Center told Sohu Auto in an interview that currently the technology line of China new energy vehicle is the plug-in hybrid and pure electric cars. And the hybrid is attributable to the energy-efficient car.

　　Indicators to measure performance of new energy vehicles

　　Currently many independent companies have announced their have already mastered R & D and production technologies for electric vehicles. The new energy vehicles of the self-owned brands introduced only at Beijing auto show has reached more than a dozen models. However, the performance of these products has not been completely approved within the industry.

　　Insiders have said from the point of view of auto technical, during the past decade, new energy technology is the field gained fewest progresses. Another comment has pointed out that the mileages of these electric cars are so short that a large number of batteries have to be brought together. From the exhibition hall to the real market, they still have a long journey to go.

　　In this regard, Sohu Auto has learned through the interview that, RULES will has some specific provisions for the actual performance of new energy vehicles to measure the levels of subsidies.

　　Whether the popularity of the new energy vehicle can be speeded up remains to be seen

　　This subsidy policy will definitely has some positive influences in reducing the prices of new energy vehicles as well as promoting consumer purchases. However, there is still much to be improved and enhanced to achieve expected targets for the development of new energy vehicles.

　　According to the Auto Industry Restructuring and Revitalization Plan adopted by the State in 2009, the market share of the new energy vehicles should reach 5% before 2012. Suppose the yearly growth of China auto market is 10%, the sales and production of new energy vehicles should reach about 900,000 units till 2012. Moreover, the pilot project of “1,000 new-energy cars in 10 cities” implemented jointly by the Ministry of Science and Finance has mentioned that “By 2012, try hard to make the scale of new energy vehicles 10% of car market”.

　　The industry has not agreed on whether this target could be achieved. Fu Yuwu, vice chairman and secretary general of Society of Automotive Engineers of China once said that he himself and Wan Gang, Minister of Science and Technology both agreed that this target should be changed to 1%.

　　Wang Binggang, head of Project Management and Consulting Group of major projects of energy-saving and new energy vehicles of “863” initiative, expressed that from the current situation, within three years, it is hard for new energy passenger vehicles to achieve the target sales of 5%, even for to relatively mature technology of hybrid cars, the sales and production increase as well as cost reduction will need at least three to five years rather than a year or two.

　　(Translator: Yalong/Jessie)

　　See original Chinese report Please click:

　　http://auto.sohu.com/20100519/n272205188.shtml