The first batch of private consumers got their electric cars yesterday in a pilot project in Shanghai's Jiading District which will pave the way for the expansion of green vehicles.

No fuel price rise worry for this driver as he charges his electric car yesterday when eight electric cars owned by individuals officially hit the road in the city as Shanghai expanded the use of greener transport to private consumers. [Shanghai Daily]

The move is part of a nationwide campaign to promote new energy vehicles amid rising fuel prices and a growing demand to cut emissions.

Eight employees of the Shanghai International Automobile City Group became the first private owners of electric vehicles in the city.

The cars were from four Chinese makers - Lifan, Chery, Zotye and BYD.

A 35-year-old auditor surnamed Huang, who drives nearly 100 kilometers in her daily commute between her home in Xuhui District and Jiading, said buying the Lifan 620 plug-in electric car would reduce her daily driving costs to just 10 yuan, compared to the current 60 yuan she spends driving her Mazda 6.

"Compared to gasoline models, this car has zero emissions and is quiet to drive. It's very environmentaly friendly," she said.

Huang paid 120,000 yuan (US$18,334) for her new car, after subsidies from the state and Shanghai governments totaling 100,000 yuan.

Shanghai is offering up to 60,000 yuan for the purchase of new energy vehicles by private consumers.

Ding Xiaohua, deputy manager of the new energy vehicle department at Shanghai International Automobile City Group, said that by the middle of April, Jiading would have 100 charging poles and one charging station, focusing on neighborhoods, offices, transport hubs, secondary roads and public areas such as banks and supermarkets.

By the end of this year, the government plans to increase that to 800 charging poles and six charging stations. It usually takes six to eight hours for a full charge at poles while charging stations can charge cars in just 15 minutes.

Shanghai aims to have 20,000 new energy vehicles on the street by next year with 25,000 charging poles.

In order to make the price of new energy vehicles more competitive, the city government is drafting regulations to better support the sector.

Normally, new energy vehicles cost some 50 percent more than normal gas-powered cars.

Ding said the high cost of Shanghai car plates and the high purchase tax - 10 percent of the price of the car - were two major hurdles which could hold back the growth of new energy vehicles.

Huang paid a total of 63,000 yuan for a Shanghai plate and purchase tax.

"We hope a certain number of car plates could be specially issued for new energy vehicles and that the government would also cut the tax to make green cars more appealing to consumers," said Ding.

Another disincentive to buy green cars at present, Huang said, was the limited number of products on the market.

But as the development of new energy vehicles moves into the fast lane, manufacturers are also picking up the pace. General Motors will start selling its first plug-in electric car Volt in China at the end of this year while SAIC Motor Corp also has plans to launch electric cars.

It is estimated that more than 30 types of electric car will be available on the Chinese market by next year.

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