Before the Spring Festival of 2009, the Ministry of Finance and the Ministry of Science and Technology issued the Notice on Piloting the Work of Demonstration and Promotion of Energy Saving and New Energy Vehicles, and decided to be in Beijing, Shanghai, Chongqing, Changchun, Dalian, Hangzhou, Jinan, Wuhan, Shenzhen, Hefei, 13 cities in Changsha, Kunming and Nanchang carried out pilot projects for demonstration and promotion of energy-saving and new-energy vehicles; encouraged pilot cities to take the lead in promoting the use of energy-saving and new-energy vehicles in public service such as public transportation, rental, official, sanitation and postal services.
The "Notice" clearly pointed out that the central government will give a one-time fixed subsidy to energy-saving and new-energy vehicles such as hybrid vehicles, pure electric vehicles and fuel cells in pilot cities. The "Notice" also requires local finance to arrange certain funds, and appropriate subsidies for the construction and maintenance of energy-saving and new energy vehicle supporting facilities to ensure the smooth progress of the pilot work. Incomplete statistics show that the average cost of a moderately hybrid vehicle is 30% to 50% higher than that of a gasoline-powered vehicle of the same type.
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