By staff reporters Wang Shanshan and Deng Hai 

(Caijing.com.cn) China is considering providing reimbursements of up to 50,000 yuan to buyers of cars powered by alternative technologies, Industry and Information Technology vice minister Miao Wei told Caijing in an interview March 12.

Miao said the proposed reimbursements will run between “10,000 to 50,000 yuan, depending on the energy efficiency of the cars.”

Miao Wei

The high end of the range would represent at best 25 percent of the purchase price of current hybrid vehicles offered by Japanese automakers Toyota or Honda, which sell for at least 200,000 yuan.

The reimbursement plan is being drafted by the Ministry of Industry and Information Technology and the Ministry of Science and Technology, which plan to release a scheme for classifying cars by energy efficiency in two months, Miao said.

Miao is a former president of Dongfeng Motor Corp., the country’s third largest automaker. He said low sales of cars using new fuels and propulsion systems is largely due to high prices, and noted that subsidies are an accepted international practice to encourage buyers of such cars.  

The cars that will be supported by the reimbursement program include those powered by biofuels, electricity, and hybrid engines.

Domestic automakers Chery Auto and BYD Auto have recently announced electric cars for the China market. Chery makes conventional small cars, while BYD is a battery-making group that has expanded into automobiles.

Full article in Chinese: http://www.caijing.com.cn/2009-03-12/110119755.html