Chinese govt boosts new energy vehicle purchases

View of the charging facilities at the production site in Daxing district, Beijing, July 23, 2014. [Photo/IC]

China is to increase to more than half the proportion of new energy vehicle purchases made by some government departments, the State Council said on Wednesday.

The decision is aimed at increasing green development as the country attempts to rein in pollution. The government has been promoting electric vehicles as away to reduce the smog that frequently blankets cities.

New energy vehicles should account for more than 50 percent of annual new vehicle purchases of central government organs, public institutions and some cities, the State Council said in a statement after the meeting, which was chaired by Premier Li Keqiang.

The ratio was set at 30 percent in July.

The State Council also announced a new set of other policies designed to encourage the use of new energy vehicles.

As part of efforts to achieve "revolutionary breakthroughs" in battery performance, cooperation will be encouraged between enterprises, universities and research institutions, according to the statement. More battery charging facilities will be built, with the sector receiving increased investment and subsidies, the State Council said.

Other measures include increasing the share of new energy vehicles in the public transportation system and enhancing their quality.

The policies come as the central government looks to industry to push industrial upgrades, ease pressure on the environment and foster new growth engines.

Thanks to government incentives, new energy vehicles have continued to gain popularity in China. The number sold last year more than tripled year-on-year to 331,100, according to the China Association of Automobile Manufacturers.

Since 2014, China has rolled out a set of measures to promote new energy vehicles.

Jia Xinguang, a senior analyst at the China Automobile Dealers Association, said, "Those who have core competencies, testing and monitoring facilities and technologies will benefit from the new incentives."