One third of the money will be funded by the local government and the remaining two thirds will by a special fund for auto industry development in Shanghai.

The capital will be in place within three years, revealed a well-informed source. The city has established an office in charge of the program.

Presently, the development of new energy vehicles mainly comprises short-term, medium-term and long-term plans. The short-term plan refers to the development of alternative energy vehicles, the medium-term one refers to hybrid vehicles and the long-term one refers to fuel cell vehicles, which will obtain the most financial aid from the program.

The program encourages the adoption of China-made components and parts, meaning it will set a lowest requirement for new energy vehicles obtaining financial aid in terms of the proportion of China-made auto parts equipped.