Geely urges Chinese government to subsidize hybrid vehicles

China vehicle manufacturer Geely Holding Group has urged the government to include other types of fuel-efficient cars such as hybrids in its subsidy program.

“The criteria to qualify for subsidies should be based on the fuel consumption and emissions of the vehicle, instead of what kind of technology they use,” Geely chairman Li Shufu said at the Chinese People’s Political Consultative Conference meeting this week. “The government should expand subsidies to include more types of vehicles, including all sorts of hybrids.”

Li Keqiang, China’s incoming Premier, is expected to introduce a plan to promote alternative-energy vehicles to curb pollution, according to Bloomberg. Under the upcoming plan, hybrid-electric vehicles would be included in a subsidy program.

At a local level Beijing residents may enjoy fiscal support and exemption from the city’s lottery for license plates in the next two month, according to Xu Heyi, chairman of Beijing Automotive Group.

Despite various government incentives, including subsidizing car buyers up to 60,000 yuan (USD 9,650), China’s electric vehicle sales have fallen well short of the government’s target. A combined 12,791 vehicles were sold in 2012 according the Bloomberg New Energy Finance, while the central government is targeting sales of 500,000 by 2015.

The safety and ease of use of new energy vehicles have been a major concern of consumers. A lack of relevant industry standards means suppliers and automakers are struggling over designs of the vehicles and the batteries.

However, the lack of charging station for is also one of the most significant factors behind the slow take up of plugin electric vehicles. Only 168 charging stations had been built in 25 trial cities by the end of 2011. The official aim is to have 10 million park-and-charge spaces for electric vehicles across China by 2020.