Chinese government decides to introduce several new policies, including measures to support the development of alternative energy and low emission vehicles, adjust industry structure and expand domestic demands, according to the executive meeting of thestatecouncil hosted by Li Keqiang, the premier minister of the State Council, on September 29th.

During the meeting, it’s agreed that the promotion of alternative energy and low emission vehicles and the elimination of high emission vehicles will contribute to reduce China’s pressure on energy and environment, promote the structure optimization of automobile industry, upgrade consumption modes and create new economic growth points.

Three decisions had been made: First, supportive policies will be completed to support the research and development of electric vehicles and fuel cell vehicles, and also the pilot projects of intelligent connected vehicles. Consumers should not be limited of buying alternative energy vehicles.

Secondly, preferential policies will be applied from October 1st, 2015 to December 31st, 2016, consumers who buy vehicles with a displacement of 1.6L or below will enjoy 50% reduction of vehicles purchase tax.

Thirdly, special actions will be taken to accelerate the elimination of yellow label vehicles that fall below the Chinese emission standards nationwide.

Googas.com believes that these new policies will make positive contribution to the healing of the depressing Chinese automobile market and also manifested that now China has paid more attention to the structure optimization and long-term effects during the promotion of industry developments, and also the balance between economic development and environment protection.

Source:a