Hybrid Car Review

China is getting into the electric car game the same way the US and Japan did, using subsidies. The Chinese government is offering 50,000 yuan (over $7,000) to those who buy a plug-in hybrid car, and 60,000 yuan (over $8,500) to those who buy an all electric car. Those who just buy more fuel efficient cars (smaller engines of 1.6-litres or less) can get 3,000 yuan. (Source: Reuters)

The subsidies are available in five cities and are an effort to cut back on pollution and fuel use. The subsidies are set to expire after 50,000 cars are sold

Unlike in the US and Japan, the money goes to the car maker, rather than the person buying the car.

So, it looks like this is an effort to encourage car makers to build and sell electric cars in China, rather than a direct encouragement to the consumer. Although the release does say the cost savings should be passed along to the buyer.