Shanghai has set a goal of producing 100,000 new-energy vehicles in 2012, with output value to hit 30 billion yuan ($4.394 billion), Asia Pulse reported.
Shanghai"s new-energy vehicle development plan says that from 2009 to 2012, the municipality will give policy supports to new-energy vehicle and auto-part companies in financing, purchasing, and human resources, and encourage construction of auto-parts production bases for new-energy vehicles.
The city government will also provide incentives for overseas research and development (R&D) centers to incorporate their developments into local production and encourage global automakers to transfer technologies to their Chinese joint ventures.
Over 1,000 new-energy vehicles are expected to run on the super-city"s roads during the 2010 Shanghai World Expo. The local government also hopes 5% of the city"s vehicles, or over 10,000 units, will be powered by new energy by 2011.
By 2012, local government institutions will buy more new-energy cars for official use. The public transportation, commuter, postal services, sanitation and other sectors will also be encouraged to be equipped with new-energy vehicles.
China"s central government is reportedly planning to introduce a purchase tax break for fuel-efficient vehicles and those powered by alternative fuel in the coming year.