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New Energy Vehicle Allowance Policy Will Published, Local Regulations Might Unified


As it known, with the background of research by the Four Ministries of government (Ministry of Industry, Development and Reform Commission, Ministry of Finance and Ministry of Science), the new energy vehicle allowance policy has officially decided and will be published recently. Allowance unified is highlighted among the regulations.

Xiaoyu Zhang, vice executive president of China Machinery Industry Federation told media that ¡°Ministry of Industry, Development and Reform Commission, Ministry of Finance and Ministry of Science are positive, but the key issue is how to balance capital, because it concerns with billion funds.¡±

Development and popularization of new energy car is focused by representatives at National People's Congress and Chinese People's Political Consultative Conference. Heyi QU, Chairman of Beijing Automobile proposed that ¡°R & D and popularization is a solution for air pollution, which should be encouraged for sure.¡±

Some experts agree with the opinion, oil price in China has broken 8 Yuan already. Fuel cost will increase dramatically in the future. However, new energy vehicle does not need to worry about the problem.

According to new energy car allowance test policy 2009- 2012, nation provides allowance to new energy car, and local government should provide another equal part as well. The tested policy has been adopted in 5 cities, and it extends to another 25 cities in 2010. After the policy expired at the end of last year, new allowance policy has not published for a long while.

New version allowance policy will have four highlights. Firstly allowance is based on engine power, but not separated by models. Secondly, new policy will last until 2015, which is very important for new industry. Besides, local government will not be forced to provide allowance like before, but center financial department will support the entire fund. At last, it is a national wide policy rather than just for testing cities.

According to industry opinion, the policy will dramatically stimulate sales of new energy car. Particularly it will benefit new energy auto industry competitive national wide. Compared with the stiff sales in the first 8 months, it probably will have a blowouts market performance after the new policy launched.

Indeed, after launched market in April 2010, local governments have different allowance regulations. For an instance, Shenzhen government provides another 30 thousand for dual model electronic car, and provides another 60 thousand for pure electronic car. However, Guangzhou, which is quite close to Shenzhen, only provides 10 thousand for pure electronic vehicles.


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