SHANGHAI - China plans to allocate an annual fund of up to 2 billion yuan (S$403 million) from this year to help develop and mass produce energy-saving vehicles to cut carbon emissions, the government said.
Government departments, logistics operators and car rental firms in 25 pilot cities will be encouraged to use environment-friendly cars while buses with hybrid engines will run in major cities, according to a statement posted on the Ministry of Finance on Tuesday.
It plans to roll out detailed policy plans in the second half of this year.
Participating cities are also urged to lift traffic curbs on green cars and introduce preferential policies to help with parking, electricity fees and highway tolls to boost their use, Vice Minister of Finance Zhang Shaochun said.
The construction of related infrastructure, such as charging stations, also needs to be sped up, he said.
The government hopes to have 500,000 electric and hybrid units on the roads by 2015, going up to 5 million units by 2020.