China to Invest $15 Billion in Eco Vehicles

China is planning to invest over the next ten years over 15 billion dollars in vehicles that are powered by alternative energy. "We expect to support measures such as subsidies, tax exemptions and preferential loans," said Yu Bing, automotive analyst at Ping An Securities Company.

Bing believes that the measures will attract customers to buy ecologic vehicles and thus the sales will be stimulated.

Manufacturers such as Toyota Motor, General Motors and BYD, funded by Warren Buffett, plans to increase production of vehicles powered by alternative energy sources to meet the demand from China, the world's largest automobile market.

Chinese state already subsidize the efficient car acquisition, to help reduce emissions. The authorities want that China to become world's largest market for vehicles powered by renewable energy by 2020.

China plans to increase by 2011 the annual production capacity of eco-friendly vehicles to 500,000 units in its efforts to reduce oil imports and pollution.