China extends supports for new energy car sector
中國擴(kuò)大對新能源汽車支持

China plans to extend its incentives in the new energy car sector and its subsidy policy will continue even after the program expires at the end of 2015.

The Finance Ministry said this weekend that specific measures would be published later.

The subsidies will be trimmed five percent for 2014. That's instead of the previously decided 10 percent cut. The subsidies will then be lowered 10 percent in 2015 instead of the announced 20 percent.

Analysts note that people bought less than 20,000 new-energy cars last year, making it difficult for China to meet its sales target of 500,000 vehicles by 2015.

Industry insiders say the gradual cut in subsidies parallels the practices of other countries such as the U.S., and subsidies will be larger early on when sales are low and production costs high.