China is expected to resume its subsidies for electric cars from next month, according to the chairman of country’s own EV maker BYD.
According to Reuters, BYD Chairman, Wang Chuanfu told reporters yesterday that subsidies which expired at the end of December last year, would soon return as part of the country’s measures to encourage battery-powered vehicles
"The previous subsidy was for 2010 to 2012, so it terminated on Dec. 31, 2012. Now, the government is setting up standards and they should be announced in April or May," Wang told Reuters’ reporters at a company event in Hong Kong.
Beijing started offering 60,000 yuan (£6,379) subsidies to buyers of electric cars three years ago. Some city governments have also been handing out similar subsidies to battery electric car buyers.
BYD has plans to introduce its Denza electric car model next year. A joint venture with Daimler, the Denza partnership originally planned to launch its first electric car-the Tengshi-later this year, but Wang would not say why the proposed launch date had been postponed.
The carmaker aims to more than triple its electric vehicle sales this year to more than 8,000 vehicles, including more than 2,000 electric buses.
Last year, the Warren Buffett-backed company sold just 1,700 electric cars and 700 electric buses.
The Chinese government wants to see more than 500,000 electric and plug-in hybrids on the road by 2015 and five million by 2020, as it works to tackle its cities air pollution problems. Subsidies will help Chinese buyer overcome the high purchase price, and kickstart the market.
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