China introduces major incentives for consumers and companies making sustainable vehiclesFebruary 8, 2012
In a bid to make itself the undisputed leader in sustainable transportation, China has announced that the sales tax on all domestically produces electric and hydrogen fuel powered vehicles will be waived.
The nation has been in pursuit of alternative energy for some time, but has put more effort into attaining sustainability in recent years. The Chinese Finance Ministry announced the plan as a way to bring more power to the country’s auto market. The rule does not only apply to domestic carmakers, however, as General Motors and Volkswagen have also been granted exemption.
The two foreign automakers have begun producing hydrogen-powered vehicles.
These vehicles are scheduled for global release between 2013 and 2015. The Chinese government has declared that clean transportation is a top priority. The government has allotted more than $1 billion toward transforming the country’s infrastructure to handle the demand for renewable fuel over the next 10 years. By 2022, China’s hydrogen infrastructure will be one of the most developed in the world.
The government has also announced a sleuth of subsidies for those buying alternatively-powered vehicles.
These subsidies total approximately $19,000 per vehicle. The subsidies do not apply to foreign models, however, even those coming from General Motors and Volkswagen. The demand for clean vehicles may still be low in the nation, but as the government begins work on a new fuel infrastructure, that is likely to change.