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China to Tighten Subsidies on Energy-Saving Cars, Official Says

China will tighten rules on subsidies for energy-saving vehicles made by local automakers, according to a government official. Cars will qualify for a subsidy if they have an average fuel consumption of 6.3 liters of gasoline or lower per 100 kilometers, Xiang Dihai, a director at the department of Economic Construction at the Ministry of Finance, said in an interview today in Tianjin. The current threshhold is 6.9 liters per 100 kilometers.

The subsidy will remain at 3,000 yuan per vehicle, Xiang said. The finance ministry and the National Development and Reform Commission will announce the policy change “soon” on their websites, he said.

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