“Green” motor vehicles receive sales boost in China

China gives its consumers more reasons to buy clean-energy or “green” cars.

The government has announced a second wave of tax cuts for clean-energy cars, with taxes cut by half. It also identified an additional 64 new energy-saving vehicle brands covered by the scheme.

The fees for users of seven types of electric automobiles will be removed, according to the Ministry of Finance, the Ministry of Industry and Information Technology and the State Administration of Taxation.

Some 10 domestic auto producers are on the list specified by the new policy which took effect last January 1. Consumers who have bought clean-energy vehicles will get tax refunds.

The government has been vigorously pushing sales of clean-energy cars by offering subsidies and reducing taxes, but sales have not picked-up.

Only 10,000 clean-energy vehicles were sold in China during the first quarter of 2012 compared to the 4.8 million vehicles sold overall in the period.

The government first applied the policy in March. At least 200 types of plug-in hybrid cars, pure electric cars and fuel cell vehicles were included in the first batch of eligible vehicles.