China Grants Subsidies to Promote Energy-saving Vehicles

The Chinese government paid 1.81 billion yuan (273.6 million U.S.dollars) in subsidies to promote energy-saving vehicles in the six-month period of June to Nov. last year, China's Ministry of Industry and Information Technology (MIIT) said Friday.

The MIIT said in a statement on its website that by the end of Nov., buyers of 604,100 vehicles had received subsidies since China began the subsidy program for purchases of energy-saving vehicles in June last year.

The subsidy program granted a one-off 3,000 yuan subsidy for every purchase of a gasoline- or diesel-fueled passenger vehicle with a displacement of less than 1.6 liters and fuel consumption 20 percent lower than the existing standard.

The MIIT also announced it has established a working group with the Ministry of Finance and the National Development and Reform Commission to enhance supervision of the subsidy program and to promote the sound and sustainable development of China's auto industry.