China will extend subsidies for new-energy vehicles to 2020, according to draft rules published on Tuesday.
The current incentive scheme expires at the end of 2015.
The policy, part of the country’s efforts to fight severe air pollution, is a boon to firms such as Warren Buffett-backed BYD, the country’s biggest maker of electric vehicles, Reuters reported, citing proposed rules released on the website of the Ministry of Finance.
Subsidies will be granted to buyers of pure electric, highly electrified plug-in hybrid and fuel-cell vehicles, with the amount of subsidies gradually scaled down during the period from 2016 to 2020, according to the draft rules.
China has rolled out a series of policies to encourage sales of “green” vehicles, hoping the industry can help China fight pollution and reduce the country’s reliance on imported oil, the report said.
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