BEIJING -- The Chinese government plans in late January to unveil incentives for buyers of hybrid vehicles in a demonstration program, says Zhang Jinhua, an official of the national 863 research program on energy saving and new energy vehicles.

 

Buyers of the vehicles will be public agencies, such as public transportation companies, post offices and administration departments.

 

The incentives will subsidize the price difference between hybrids and conventional gasoline powered vehicles, says Zhang, a director of the 863 program's expert team. 

 

The incentives will only apply to the government's demonstration project known as "Ten Cities, One Thousand Vehicles," he says.

 

Under the program, the government wants at least 1,000 new-energy vehicles operating in each of 10 cities.

 

"Over 50,000 fuel efficient and new energy vehicles will be used in public sectors in the next three years." Zhang told Automotive News China.

 

Ninety percent of the vehicles will be hybrids, says Zhang. "Hybrids are reckoned as first priority for the government in promoting new energy vehicles."

 

Hybrids use a gasoline or diesel engine and one or more electric motors to power the wheels.

 

Zhang says, the government will decide whether or not to offer incentives to individual buyers after the large scale demonstration project.

 

He says the new policy won't cover direct subsidies for automakers.