The Chinese government will back the development of alternative energy-powered vehicles, particularly electric vehicles, in the years to come, according to a recent cabinet meeting on the automobile industry.
China should prioritize the development of electric and hybrid cars and will launch a pilot program on subsidizing buyers of such cars, according to minutes from the meeting.
China aims to sell a total of 500,000 electric vehicles by the end of 2015 and a total of five million units by the end of 2020.
The meeting proposed cutting fuel consumption by vehicles manufactured in 2015 to 6.9 liters per 100 kilometers on average and to 5 liters by 2020.
China sold 8,159 environmentally friendly cars in 2011, including 5,579 electric cars and 2,580 hybrid cars, figures from the China Association of Automobile Manufacturers showed.
Saic Motor Corp (SHA: 600104), China's biggest automaker, BYD Co (SHE: 002594, HKG: 1211) backed by Warren Buffett, and Geely Automobile Holdings Ltd (HKG: 0175), China's largest privately-owned carmaker are spearheading the cleaner car industry.