China's official news agency reported that at least 30 percent of government cars that will be newly purchased will be electric cars or "new energy vehicles."
"New energy vehicles" include plug-in hybrid cars, fuel cell-powered cars and solar-powered cars.
Xinhua News Agency said that five government departments and ministries have formed a joint plan that will see 30 percent of the vehicles that will be purchased for government use to utilize clean energy.
The duration of the plan will be from 2014 to 2016, with the percentage of the clean energy vehicles being purchase to increase yearly after the period.
This joint plan by the government of China is part of the country's attempts to battle against the growing concerns of air pollution in China through the promotion of electric cars.
China, the largest auto market in the world in terms of the number of cars sold per year, will greatly benefit from increasing the percentage of its vehicles to electric cars that do not contribute to the pressing pollution problem.
To further the initiative, China has waived the purchase tax of 10 percent imposed on electric cars and "new energy vehicles," as sales of electric cars have been very slow to pick up in the country compared to the high growth in the Unites States, Japan and Europe.
The waived purchase tax adds to the subsidies offered by the Chinese government on electric cars, which could reach to as high as over $18,000. In addition, China has placed a limit on the number of regular vehicles sold in certain pollution-stricken cities.
Even with the government-led initiatives, electric car sales in China have been slow due to the concerns of consumers over the price, reliability and convenience of the vehicles.
The waived purchase tax will take effect on September 1 and will last until the end of 2017.
Wan Gang, Science and Technology Minister of China, believes that more policies to help increase the adoption rate of electric vehicles will be coming over the next few years. He adds that, while more work is needed to build up the existing electric car infrastructure, the environment-friendly cars are high on the country's agenda.
Gang's revelations bode well for the car companies that are looking to invest more in electric car sales in China, despite the slow growth of sales. Tesla Motors, BMW and Volkswagen are either selling or planning to sell electric cars in the Chinese auto market.
Tesla Motors, which has released its Model S for sale in China, has reportedly sold 1,300 electric cars. BMW will look to enter the market in September with its i3 electric car, while Volkswagen is planning to sell its e-Up electric car in China as well.
