China to Spend $14.7 Billion on Domestic Makers of Alternative-Fuel Vehicles
By Scott Doggett August 17, 2010
The Chinese government plans to spend roughly 100 billion yuan ($14.7 billion) through 2020 to help domestic companies develop alternative-fuel vehicles, The Nikkei Japanese subscription news service reported today.
The report amounts to yet more evidence of China's drive to be the global leader in electric-drive vehicle use and development/production. And it comes on the heels of a report that Dongfeng Motor Corp., China's third-largest auto group, plans to invest $443 million in hybrid and electric vehicles.
According to a draft blueprint prepared by China's Ministry of Industry and Information Technology, electric vehicles and plug-in hybrids will form the core of the initiative. The goal is to put 5 million alternative-fuel vehicles on Chinese roads by 2020.
China FAW Group Corp., China Petroleum & Chemical Corp. and 14 other businesses, including major automakers and battery developers, will establish an industry organization, The Nikkei reported.
The program, whose outline is expected to be released Wednesday, will call for investing 65 billion yuan ($9.57 billion), or roughly two-thirds of the overall budget, by 2015.
Of this investment, 30 billion yuan ($4.4 billion) will be spent to fund research and development at electric vehicle makers and subsidize purchases of eco-friendly cars, The Nikkei reported.
Additionally, 5 billion yuan ($736 million) will be earmarked for setting up charging stands, with 10 billion yuan ($1.47 billion) set aside to assist manufacturers of such key components as motors and batteries.
For hybrid vehicles, 20 billion yuan ($2.94 billion) will go toward development and buyer subsidies for such vehicles.
The government will decide how to spend the remaining budget in 2015 after assessing the program's progress.
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