The city of Shenzhen began offering subsidies for new-energy vehicles on Tuesday, as part of broader national program to encourage fuel-efficiency.

Under the terms of the new regional subsidy plan, plug-in hybrid car makers can qualify for up to 30,000 yuan ($4,412) subsidy for each sale and wholly electric car makers can qualify for up to 60,000 yuan per unit sold, said Shenzhen Mayor Xu Qin on Tuesday.

Private car buyers in the city can qualify for a subsidy of 9,000 yuan for the purchase of an energy-efficient car.

Electric carmaker BYD Co, a key beneficiary of the extra government subsidy program, saw its shares gain 5.91 percent to HK$60 on the Hong Kong Stock Exchange on Tuesday. [Read more...]