2010-06-03 17:11

BEIJING: China plans to subsidize purchases of energy-saving vehicles and energy-efficient electric engines in a bid to further cut emissions, the country's top economic planner said Thursday.

Buyers of vehicles with engines smaller than 1.6 liters will receive a 3,000 yuan subsidy, said a statement posted on the website of the National Development and Reform Commission on Thursday.

Currently, China levies a 7.5 percent tax on purchases of small-engine vehicles, lower than the 10 percent tax for vehicles with bigger engines, in a bid to boost consumption.

The subsidies could boost small-engine vehicle sales in China by more than 4 million units by 2012, reducing oil consumption by 750 million liters and carbon dioxide emissions by 3.3 million tons, the statement said.

The statement did not reveal the specific date when the subsidies will be implemented.

China will also promote certain energy-efficient, small and medium-sized electric motors such as three-phase asynchronous motors by providing subsidies as much as 60 yuan per kilowatt.

China has recently introduced a range of subsidies on vehicle sales aiming to cut emissions. On Tuesday, the government released its green-car subsidy program designed to boost the nation's auto industry and cut vehicle emissions.

Subsidies of up to 60,000 yuan ($8,784) will be given to buyers of electric vehicles in cities taking part in the pilot program, Shanghai, Changchun, Shenzhen, Hangzhou and Hefei.

Buyers of plug-in hybrid cars will receive up to 50,000 yuan in subsidies.

The government also said on Wednesday the country was promoting clean-energy vehicles for public transportation in seven more cities, increasing the number of major cities with such vehicles to 20.