China has launched a new round of government subsidies for new energy vehicles in November 2013, in a bid to further accelerate the development of green vehicles, promote energy saving and reduce air pollution. New energy vehicles in the renewal include pure electric vehicles, plug-in hybrid electric vehicles, and fuel-cell vehicles. The policy is also encouraging new energy vehicle purchases by government bodies and public transport sector. It is confirmed that 28 cities or areas will be the first batch trial for new energy vehicles.

According to the Notice on Pilot Subsidy for Private Purchase of New Energy Vehicles which was jointly released by 4 ministries including the Ministry of Finance in November, 2013, the subsidy standard is determined by the capacity of power batteries. New energy vehicles up to the requirement will be subsidized with RMB 28,000 to RMB 54,000, and at the same time, the local government will also have additional subsidy policy coming out. According to analysts, the subsidy from the local government will reach ratio of 1:1 respect to the central government, and the subsidy from the government can be reached in total of RMB 108,000.

BYD, CHERY, Volkswagen, GM, VOLVO and other car makers are now rallying again to implement tailor-made strategies and to bring new energy vehicles to China to meet customer's need, and to start the localization of green vehicle technology and production in China to enjoy government subsidies.