The trials will run in Shanghai, Changchun, Shenzhen, Hangzhou and Hefei before the subsidies are rolled out nationwide.
According to the statement, plug-in hybrid buyers could enjoy a subsidy of up to RMB 50,000, while pure electric vehicle buyers could get a subsidy of RMB 60,000 per unit.
The money would be given to new energy vehicle producers so that they could lower the vehicle price to benefit buyers or leasing companies.
During the trial period, the central government will appropriately lower the subsidy standard after the sales of plug-in hybrid vehicles and pure electric passenger vehicles reach 50,000 respectively for every manufacturer.
In addition, the central government will grant a RMB 3,000 one-off fixed subsidy per unit for cars with engine displacement not exceeding 1.6 liters and fuel consumption 20% below current standards. The subsidy will be directly paid to customers by the manufacturer at the time of sale.