According to the Shanghai Securities News, local subsidies offered on electric vehicles in select areas of the China will make electric automobiles affordable to average families.
Certain areas of China including Chonhqing, Shanghai, and Shenzhen offer great incentives to buy electric vehicles. Programs in place in those areas give discounts up to $5,270 on electric vehicle and hybrid vehicle purchases.
The subsidies may not seem substantial, but many of the best selling vehicles in China come in at very low prices. Further increasing the benefits for electric vehicle owners is an exemption that allows EVs to pass through toll booths on public roadways without paying. This exemption could amount to as much as $7,000 in savings over the course of three years for most drivers.
The subsidies offered in China cover approximately 90 % of the added cost of a hybrid model. According to the report, this is far more than the standard subsidies offered by both Europe and the United States.
One problem still exists, China has virtually no hybrids or electric vehicles in production or on the roads today. The upcoming model that will qualify for the subsidy is the Chang an Jeixun hybrid which will start deliveries this month. The production run for this vehicle is limited to mainly demonstration models and only 1,000 will be available in 13 major Chinese cities. Another important vehicle in production is the BYD F3DM.
With subsidies in place, buyers may be eager to get their hands on an EV or hybrid model, but they have limited availability right now. Buyers will have to wait to secure there electric vehicle at the highly discounted rate.
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