First List of Subsidized Energy-Saving Vehicles Released

The first list of energy-saving vehicles with an engine size of less than 1.6 liters and the "Benefiting the People with Energy Saving Products Project" was jointly released by the National Development and Reform Commission, the Ministry of Industry and Information Technology and the Ministry of Finance on June 30, officially marking the start of subsidies for energy-saving vehicles.

The issuance of the first 71 energy-saving vehicles indicates the largest car discount this year will be in July. The list shows cars with engines smaller than 1.6 liters, but China's own car brands only account for less than 40 percent.

According to sources, all 71 cars on the list have the Motor Vehicle Fuel Consumption Logo and their comprehensive fuel consumption is reduced by about 20 percent compared with the current standard.

The central government will provide subsidies of 3,000 yuan for each consumer who buys the energy-saving vehicles mentioned on the list and the subsidies will be paid to consumers by car manufacturers when selling cars.