China, the world's second-biggest oil user, wants to boost domestic sales of hybrids and electric vehicles to cut fuel imports and pollution. Subsidizing the cost of the cars may be the only way to make that happen.

Hybrids and electric automobiles account for about 0.01 percent of Chinese passenger-vehicle sales, according to JD Power & Associates China, and they have largely missed out on a demand boom that has put the country on course to surpass the U.S. as the world's biggest auto market. Warren Buffett-backed BYD Co., for instance, sold 31 F3DM plug-in hybrids nationwide in the first seven months of the year.

"We hope the local and central governments will work together to provide subsidies to consumers," BYD Chairman Wang Chuanfu said at an automotive conference in Tianjin yesterday. That would "definitely" help sales.

China has given out subsidies in rural areas this year to help poorer farmers buy regular gasoline-powered vehicles. Similar support may also be needed to reach the government's goal of boosting hybrids and battery-powered car's market share to 5 percent of passenger vehicles by 2011.

Source : english.chinabuses.com

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