China Launches Green Car Initiatives
Long derided as a country with lax environmental regulations, China has seen challenges as the world’s manufacturing factory. It is surprising therefore to learn about the progressive stance the Chinese government has announced this summer that have ramifications in the green car industry.
A program was introduced in June 2010 that provided incentives for manufacturers to make cars that have engine sizes 1.6L and smaller and better than 7.0 L/100km. This would qualify them for a 3000 yuan ($500) rebate. The program was quite successful, resulting in the program’s funds running out in the early summer. Sounds very similar to a government much closer to home! The program has been relaunched, only with tightened qualifying standards, as most expect vehicles consuming less than 6.3L/100km will receive incentives.
The other news is that the government has wisely decided not to tax electric cars, hybrid cars and fuel cell vehicles. This exemption will encourage the manufacture of green vehicles that save resources or use alternative energy for the local car market.
What do you think about China's Green Car initiatives? Is it enough or should they be doing more? There are some parallels in the government incentive programs for hybrid vehicles back here. Is this an incentive for you to finally scrap that junk car and pick up a car with a lower ecological footprint or is the hybrid technology, even with government rebates still to costly?