Electric cars: China exends EV subsidies beyond 2015
China plans to continue its electric-car subsidies as part of a continuing effort to jump-start plug-in sales, which so far have been minimal, and reduce air pollution.
The Chinese government announced Saturday that it will聽,听Reuters听谤别辫辞谤迟蝉.
The current subsidies of up to 60,000 yuan (about $9,800) apply not only to pure battery-electric vehicles, but also to "near-electric" plug-in hybrids, and hydrogen. However,听.
These subsidies will be allowed to expire in 2015 as planned, but will be replaced with new incentives that will "preserve policy continuity," according to聽Reuters.
Details of the new policy will be released later at an unspecified date.
In the meantime, China will cut the current聽聽by 5 percent this year, and 10 percent in 2015,听Bloomberg Businessweek听谤别辫辞谤迟蝉. Those cuts are smaller than originally anticipated.
Maintaining subsidies will help China reach the goal of putting half a million "new-energy vehicles"--including battery electrics, plug-in hybrids, and hydrogen-fuel cell vehicles--on the road by 2015, and 5 million by 2020.
An influx of greener vehicles would help solve one of China's major problems: air pollution.
Last November, the World Health Organization (WHO) found Chinese outdoor air pollution causes lung cancer, and increases the risk of bladder cancer.
Last year, China became the聽, and while vehicles are far from the only sources of air pollution in the country--industry and coal-fired power plants are the main sources--there has been considerable public pressure to lower emissions.
In addition to the "new-energy聽" subsidies, the Chinese government has also adopted聽, and plans to work with the United States to.
Despite the pollution problem and the existence of government incentives, Chinese consumers have聽.
Lack of technical expertise has also made it聽.
Nonetheless, high-profile U.S. electric-car startup Tesla Motors is optimistic about the future prospects for electric cars in China. CEO Elon Musk believes聽.
The Model S electric luxury聽聽doesn't currently qualify for subsidies, but Tesla hopes that will change.
罢丑别听聽is priced in China at 734,000 yuan (about $121,000)--compared to its U.S. base price of around $80,000--due to taxes and shipping costs.
