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China to Subsidize Use of Energy-efficient Vehicles in Public Sector

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China is to promote the use of energy-efficient and new-energy vehicles in public sector in 13 cities, the Ministry of Finance (MOF) said on Monday.

According to a joint statement by the MOF and the Ministry of Science and Technology, the central government will offer one-off subsidy for the purchase of mixed-power, electric and fuel-cell vehicles.

The statement said the subsidy will be decided by the gap between the prices of energy-efficient vehicles and automobiles powered by traditional fuel.

The program will be put into trial in public transport, taxi industry, postal and urban sanitary services in 13 cities including Beijing and Shanghai.

The program is aimed at facilitating the technology upgrading and structural optimization of the automobile industry, said the statement.

Local governments should also allocate funds for the building and maintenance of related facilities, said the statement.

(Xinhua News Agency January 27, 2009)