Pudong cuts subsidy by half for new energy cars
Print Edition
PUDONG New Area has slashed the cash subsidy offered to buyers of new energy cars.
The subsidy was cut in half to 10,000 yuan (US$1,290), the district government said, but does not affect residents of other districts in the city.
The change in policy is in line with the national policy as the national subsidy kept decreasing over the past two years, district officials said.
The subsidy cut however did not affect the residents’ enthusiasm for green cars as they will continue to get the much-sought after free car plate.
During the first six months this year, a total of 14,547 new energy vehicles were sold, which was up by 888 percent compared with the same period last year. About one third were purchased from Pudong New Area.
In Shanghai, qualified green car buyers can avail of central and city government subsidies of approximately 20,000 yuan besides a free car plate.
The new policy will apply for vehicles purchased by private users between July 1 and December 31, 2015.
“I regret I did not buy a car earlier to enjoy the subsidy, but this cutback won’t affect my decision to get a hybrid vehicle,” said Marina Ye, a resident who wanted a car before her wedding. She said that the main reason to go for a new energy car was the free car plate.
“It’s very difficult to get a car plate in the city now.”
But she admitted that she was more likely to use petrol even after installing the charging post as it was more convenient for travel.
At a car plate auction last weekend, a total of 170,995 people bid for 7,763 car plates with the average winning price around 85,424 yuan.
On July 1, the government came out with a new policy, insisting that hybrid car buyers could avail of free car plates only if they installed a charging post first. The policy was enacted after it was discovered that most hybrid cars owners used petrol — rather than electricity — to travel around.
An industry analyst, Ye Sheng, said Chinese car buyers were not ready to pay more for environment yet.
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