In late January, the government enacted a pilot program to subsidize hybrid, electric and fuel cell vehicles.

That's a good thing. But the government should take quick steps to ensure the subsidies are spent wisely.

Under the program, a hybrid car buyer receives between 4,000 and 50,00 yuan ($585-$7,310), depending on the car's fuel efficiency.

An electric car buyer receives 60,000 yuan ($8,772), while a fuel cell car buyer gets 250,000 yuan ($36,550).

Attracted by the subsidies, a slew of domestic Chinese automakers now say they have new-energy vehicles. Claims of breakthroughs and world-class technology are pouring forth. Chery Automobile Co. and Zhejiang Zotye Auto Co., for instance, have both declared that their electric-car technology is the most advanced in the world.

But here's the key question: How capable are all these new vehicles?

So far, independent data on the cars is not publicly available. The government is in danger of wasting subsidy money on substandard vehicles.

The finance ministry plans to allocate 10 billion yuan ($1.5 billion) for the subsidy over the next three years. Provincial governments will be required to add to the subsidy.

The government is now in the process of deciding which automakers will be eligible.

What it should first do is ensure that only those who truly qualify get the money.

The government should hire independent firms to test and certify the vehicles.  And the vehicle selection process should be open and transparent.

Source : internet

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Tags: Government Subsidies Green Vehicles