On December 30, 2014, China's central government announced additional measures to support new energy "green" vehicles. The plan is to extend the current incentive scheme for the purchase of electric, hybrid or fuel cell cars, which was due to expire at the end of 2015.

Pure-electric cars will initially receive subsidies up to 55,000 yuan, but the amount will be gradually reduced over the 2016 – 2020 period.

The incentive program has been proven successful so far: the production of electric vehicles in China in 2014 registered a five-fold increase if compared with the previous year. The policy represents China's latest effort to fight severe air pollution and traffic congestion, and at the same time it aims at boosting the national industrial production, since the incentives will only be granted for the purchase of locally manufactured green vehicles.

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