China’s Shenzhen City Paying $800M For Green Energy Vehicles

According to an official statement released recently, the Shenzhen city government plans to contribute up to $800 million (5 billion yuan) to stimulate increased green vehicles sales.

The Shenzhen government plans to use the fund to increase green energy infrastructure throughout the city. By creating charging stations and financially assisting purchasers of green vehicles Shenzhen hopes to reduce the cost of owning one of these vehicles.

Currently in Shenzhen, there are 10,000 electric, plug-in hybrid, and fuel cell vehicles registered. This is only about one-third of the eventual 35,000 unit goal the city is attempting to reach by 2017.

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The city, which is also home to the Warren Buffet-backed BYD Auto, plans to provide buyers of its Qin model for example, subsidies of $5,594 (35,000 yuan) towards the total cost. Along with aid from the central government, the final price of the vehicle would be just a third of the original expense.

Taxi companies can also get in on these subsidies, the Shenzhen government is planning on dealing out $8,918 (55,800 yuan) to those who replace their fossil fuel propelled cabs with electric models.

Ultimately, by the end of 2015, Shenzhen would like to add 15,000 new green energy vehicles into the city. As well, add 1,800 fast-charging stations to the already existing 81.

This whole strategy is part of the China’s attempt to repress its currently staggering need for automotive fuel, along with helping its domestic car manufacturing market grow.

As reported in the statement this is all in attempts to reduce pollution in Shenzhen, while simultaneously getting Chinese vehicles to compete at a higher level internationally.

EE Publishing, LLC