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BEIJING -- China will release more supportive policies this year to promote the development of new energy vehicles (NEVs) to help the environment and drive growth.
China will support the purchase of NEVs by the local government and continue to waive purchase taxes for NEVs during the 2018-2020 period to encourage green transportation, the Xinhua-run Economic Information Daily reported.
Chinese banking authorities also announced new loan policies to allow buyers of NEVs to borrow a larger portion of the purchase price. Starting in 2018, NEV buyers will be able to borrow up to 85 percent of the cost from banks, up from the previous 80 percent.
Policies to clarify industrial standards and regulate battery recycling will also be rolled out this year.
NEVs refer to vehicles powered by non-traditional fuel, such as electric and hybrid vehicles. Thanks to favorable government policies, China"s NEV market has seen rapid growth in recent years.
Output and sales of NEVs jumped 225.5 percent and 200 percent year on year to reach 81,855 and 74,667, respectively, in the first two months this year, according to the China Association of Automobile Manufacturers (CAAM).
For 2017, a total of 777,000 new energy vehicles were sold in the Chinese market, up 53.3 percent year on year, according to the CAAM.
The growth was 0.3 percentage points higher than in 2016, when China sold more new energy vehicles than anywhere else for a second year.
The government expects new energy vehicle output and sales to hit 2 million annually by 2020, and overall auto output to reach around 30 million by 2020 and 35 million by 2025, according to a government plan.