China has mandated that electric cars make up at least 30% of government vehicles bought by 2016.
It will also exempt EVs and other types of “new energy vehicles” from purchase tax from September to the end of 2017 as the nation aims to fight pollution and cut energy use.
The exemption applies to imported as well as domestically-produced vehicles.
Central Government ministries will take the lead on buying new energy vehicles which includes electric cars and plug-in hybrids.
China’s State Council said in a statement: “For achieving industrial development and environmental protection, this is a win-win.”
The Government has set a target of having five million new energy vehicles on the roads by 2020.