CHINA'S new subsidy for fuel-efficient vehicles will benefit 26 models after the government this month imposed a more stringent requirement for the grant, the National Development and Reform Commission said yesterday.

The models, with 49 variations, will be eligible for the 3,000 yuan (US$469) subsidy, the country's top economic planner said in a statement yesterday.

China introduced the subsidy program for energy-saving vehicles in 2010 to help boost demand, benefiting more than 340 variations of car models.

In September, the government announced it would impose a stricter standard for the subsidy to promote more fuel-efficient technologies and encourage restructuring among auto makers.

Since the beginning of this month, the new standard gives them a subsidy of 3,000 yuan per vehicle for cars weighing 1,205-1,320 kilograms and consuming no more than 6.3 liters of fuel per 100 kilometers, lower from the previous 6.9-liter threshold.

As there is a sharp fall in the number of models that benefit from the new subsidy compared with the previous scheme, an analyst estimated growth in the market would slow further in the rest of this year.

"China's home-grown car makers would be more affected as Chinese-branded vehicles are more competitive in the subcompact car segment, which now has fewer models in the new standard," said Cui Dongshu, vice secretary-general of the China Passenger Car Association.

Shanghai General Motors has nine models in the new subsidy, including new Chevrolet Sail and Chevrolet Aveo. The Volkswagen Passat and China-made cars such as BYD F3 and Chang'an Benben mini are also included in the subsidy.

Vehicle deliveries in September rose 5.5 percent year on year to 1.64 million units, the China Association of Automobile Manufacturers said.
 

Source:shanghaidaily