China has stepped up efforts to develop its green energy auto sector. Subsidies will be offered for buyers who opt for environmentally friendly cars, in five major cities across the country.

An environmentally friendly car is a good idea, but it's an expensive option.

So China is offering an incentive... buyers who choose a green alternative will be eligible for subsidies of up to 60 thousand yuan in subsidy. That could make a big difference.

Zotye auto is now leasing hundreds of electric autos in Hangzhou... it's one of the five cities chosen for the pilot subsidy program. The news has buoyed the sales market.

Sheng Jie, P.R.Officer, Zotye Auto, said, "The subsidy is considerable. It's a direct support from the government for our automakers. More importantly, the policy outlines a roadmap for the industry. It gives a direction for the new energy auto manufacturers, and boosts our confidence."

Subsidies will go directly to manufacturers' accounts so their products can be sold at a much lower price. This will encourage them to fund research and development of next generation autos.

"Although China has devoted a lot of resources to develop new energy autos, most vehicles on the streets are still powered by traditional energy sources. But developing clean tech vehicles is the trend of the world's largest auto market, and we are just on the eve of the new era which will change the face of the industry."

Chen Dongsheng has been working in the industry for over 20 years. He says because China has such a big auto market, it should play a role in setting the pace of development.

Chen said, "It's a big contribution if China as the largest auto market can popularize clean technology. But in regards to technology, we still need to make breakthroughs. And we should participate in setting the world standard for the industry. With China's supporting policies and gradually steps forward, the market will see a leap in the next three to five years."

The EU debt crisis continues to loom over the global economy, and China is tightening certain industries. It's hoped the new-energy auto sector and other clean technology industries, can generate more sustainable demand for the economy.

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