Southwestern Chinese city launches grants for hybrids

The government in Chongqing, China, plans to award subsidies of RMB 43,000 yuan ($6,300) to buyers of hybrid cars—but only those made by a local company.

The subsidies are only applicable for the Jiexun brand hybrid sedan made by Chang’an Auto, based in Chongqing. Last year, the province said it was awarding a grant of RMB 20 million ($2.9 million) to the company to develop hybrid vehicles, as well as developing a program to offer subsidies to buyers (see Beijing meets "blue sky days" target early).

The program is the first by a Chinese city to encourage the purchase of private vehicles, and is part of a national program to encourage the adoption of new energy vehicles in a dozen cities (see China taps Renault-Nissan for electric car pilot in 2011).

The total subsidy includes an exemption to RMB 7,000 in road fees over three years. The subsidy represents a 30 percent discount on the vehicles, and covers 90 percent of the price difference between the hybrid and standard versions of the Jiexun sedan. The hybrid version was launched during the 2008 Beijing Olympics.

Chang’an Auto is part of the Chongqing Changan Automobile Company (SHE:200625).

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