China's Green Car Revolution: 4.3 Million Units Sold with Government Subsidies

China's efforts to promote environmentally friendly transportation have shown significant results, with the production of over 4.3 million energy-efficient cars since the introduction of a government subsidy program in June 2010. The program, aimed at reducing carbon emissions and promoting green technology, offered manufacturers a sales subsidy of 3,000 yuan (US$465) for cars with specific fuel economy standards. According to the Chinese Ministry of Finance, the program led to the sale of 4.33 million green vehicles in the country between June 2010 and August 2011, with August alone accounting for 658,000 units. The government has spent approximately 300 billion yuan on 3.57 million vehicles to date.

Key Takeaways:

• China's government subsidy program for green cars has resulted in the production of over 4.3 million energy-efficient vehicles since June 2010.
• The program offered manufacturers a sales subsidy of 3,000 yuan (US$465) for cars with a 1.6-liter engine capacity or less and fuel economy of at least 34 miles per gallon.
• In August 2011, 658,000 green cars were produced in China, bringing the total number of green vehicles sold to 4.33 million between June 2010 and August 2011.
• Green cars accounted for 50% of all cars with 1.6-liter engine capacities or smaller sold during the 14-month period.
• The Chinese government is drafting new rules regarding green car technology, which may require foreign automakers to form joint ventures with local companies.
• South Korea's Hyundai Motor Co. is planning to develop a new electric vehicle (EV) brand exclusively for Chinese consumers.
• Beijing Hyundai Motor Co. plans to roll out an EV model in the first half of 2012 to meet demand for environmentally friendly cars in China.

Statistics:

• 4.3 million: The total number of energy-efficient cars produced in China since the introduction of the government subsidy program in June 2010.
• 3,000 yuan (US$465): The sales subsidy offered to manufacturers for green cars with 1.6-liter engine capacity or less and fuel economy of at least 34 miles per gallon.
• 4.33 million: The total number of green vehicles sold in China between June 2010 and August 2011.
• 658,000: The number of green cars produced in August 2011.
• 50%: The proportion of green cars sold among all cars with 1.6-liter engine capacities or smaller during the 14-month period.
• 300 billion yuan: The amount spent by the Chinese government on 3.57 million vehicles to date.
• 2012: The planned launch year for Beijing Hyundai Motor Co.'s electric vehicle model in China.

Sources:

• "China's green car production tops 4.3 million" - Asia Pulse, Sept 21
• Chinese Ministry of Finance
• Yonhap News Agency
• (Yonhap)