Favorable policies that support the development of new energy vehicles are expected to come out this year. The regulator has completed soliciting public opinion on the drat policies, which include preferential taxes on new-energy vehicles, according to the insider.

The Olympics last month opened the way for the biggest showcase of alternative fuel vehicles in China, but there’s a lot more coming, according to the Minister of Science and Technology. A "green fleet" of 500 vehicles running on a range of alternative fuels have been used since the start of the Olympics. It was not just an exhibit but the start of an industry.

The government is planning to promote "one thousand alternative-fuel vehicles in 10 cities". In four or five years, the mass production of alternative-fuel vehicles will become a reality, making up 10 percent of annual output each year.