After months of waiting, Beijing announced a pilot scheme on Tuesday for five Chinese cities in its bid to promote green cars in the world's largest and fastest growing auto market.
The handouts favor electric vehicles and plug-in hybrids, a relatively undeveloped field with no clear champions, reflecting Beijing's resolve to foster domestic brands.
"It's clear the government want to push electric vehicles because this indeed is supposed to be the area where Chinese carmakers can compete very quickly," said Klaus Paur, director at industry consultancy TNS's North Asia automotive division.
"The Chinese car manufacturers are the main target for the subsidies and they should be the main beneficiaries."
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