Ever since last summer's Olympic Games put the issues on the world stage, Chinese officials have been working hard to alleviate some of the poor air quality, high traffic and fuel consumption woes that its largest cities have been facing. Various measures have been put into effect, such as banning vehicles on specific days based on license number, lowering taxes on fuel efficient vehicles and raising the price of gas.

Chinese automakers have been working just as hard on new fuel saving hybrid vehicles, with companies like BYD, SAIC and Chery all working on hybrid vehicles. Now, the two hopeful solutions are set to merge as the government institutes a new set of subsidies for hybrid cars and buses.

To qualify, a hybrid passenger vehicle must achieve a relatively meager 5 percent improvement over its non-hybrid competition. Hybrid buses purchased by governmental agencies can qualify if they post at least a 10 percent efficiency improvement.

[Source: China Car Times]

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