China to prolong subsidies on electric cars after 2015

China to prolong subsidies on electric cars after 2015

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The usage of electric cars is becoming increasingly popular on a daily basis. China is considered to be the second-biggest energy user in the world and is now all set to offer additional subsidies for electric cars than the previously announced. The country will also be extending the incentive program after 2015, which will help to reduce air pollution.

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In 2014, the government of China will be reducing the subsidies by 5 percent, instead of 10 percent which has been announced earlier. In addition to that, the country’s government will also cut the incentives by 10 percent in 2015, instead of 20 percent. The latest subsidy figures were released in a statement by the Ministry of Finance on February 8, 2014.

The statement went on to say that China will continue to subsidize electric vehicles, following the expiration of the current program at the end of 2015. The recent move has been made by the government as it is facing huge problems related to air pollution. In recent months, many cities in China have been experiencing heavy smog.

The country is considered to be one of the most aggressive promoters of electric vehicles. The country announced in September 2013 that it will offer as much as 60,000 yuan for every purchase of an all-electric passenger vehicle and 35,000 yuan for a plug-in hybrid car.

Photo Credits: Car News China