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Automobile industry

China to Offer Subsidies for Energy-Efficient Vehicles from South Korean Automakers

Strategic Insights

— 1 min read

The Chinese government has initiated a program to incentivize the purchase of environment-friendly vehicles by offering subsidies to buyers. As part of this effort, China will provide a minimum subsidy of 3,000 yuan (US$440) to consumers who purchase energy-efficient cars manufactured by Hyundai Motor Co. and Kia Motors Corp., both from South Korea. This move is aimed at increasing the adoption of clean-energy vehicles, particularly in public transportation, and reducing emissions from vehicles in China.

Key Takeaways:

  • China will offer a minimum subsidy of 3,000 yuan (US$440) to buyers of energy-efficient cars from Hyundai Motor Co. and Kia Motors Corp.
  • The National Development and Reform Commission has chosen 12 energy-efficient models from the two South Korean automakers out of 71 models from 16 companies.
  • The selected models have reduced fuel consumption by 20 per cent, meeting the criteria set by the NDRC.
  • The Chinese government aims to promote the use of hybrid, electric, and energy-efficient vehicles to boost the auto industry and cut emissions.
  • Hyundai and Kia are accelerating their research and development of green cars to secure a spot in the rapidly growing market.
  • Kia plans to launch plug-in hybrid electric vehicles (PHEV) in 2012, combining the characteristics of hybrid electric and fully battery-powered vehicles.

Statistics:

  • 3,000 yuan (US$440) - the minimum subsidy offered by China to buyers of energy-efficient cars from Hyundai and Kia.
  • 12 - the number of energy-efficient models chosen by the NDRC from Hyundai and Kia.
  • 71 - the total number of energy-saving models from 16 companies selected by the NDRC.
  • 20 per cent - the reduction in fuel consumption of the selected energy-efficient models.
  • 16 - the number of companies providing "energy-saving" models.
  • 20 - the number of cities where China has been promoting clean-energy vehicles for public transportation since last year.
  • 2012 - the planned launch year for Kia's plug-in hybrid electric vehicles (PHEV).

Sources:

  • Yonhap

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