According to the plan, electric cars that qualify for subsidies are those that have received government’s production license and are assembled in China, regardless of whether made by domestic or joint-venture firms. The industry sources said that imported electric cars would have little hope of benefiting from the policy in the initial stages.

Zero emission pure electric cars would be the preferred technological paths for new energy cars in China, which would be reflected in the stimulus plan, said sources. Other technical options include hybrid, fuel cells and hydrogen fuel new energy vehicles. “The government’s stimulus policy, which will be released soon, will focus mainly on promotion of pure electric cars,” said Xu Changming, a senior economist of State Information Center, a thinktank under the National Development and Reform Commission.