The development of the electric vehicle industry has been a priority of the Ministry of Science and Technology for more than a decade.
The Ministry of Industry and Information Technology and the National Development and Reform Commission have issued about 20 regulations over the past 10 months to regulate and promote the use of electric vehicles nationwide.
However, there are certain problems to solve before electric vehicles achieve mass appeal, said Rong.
"Battery performance, cost and the lack of recharging facilities need to be addressed to convince motorists to choose electric vehicles," said Rong.
SAIC Motor Corp Ltd has set up 1,170 recharging stations in Shanghai, but most of these are in suburban areas.
Rong added that the local government is working on the construction of supporting facilities for electric vehicles, a move which is essential to expand the electric-vehicle market.
However, analysts suggested that the policy won't lead to a rapid increase in demand for new-energy vehicles.
"The policy will attract certain consumers who want to buy low-cost cars, but won't immediately boost the development of new-energy vehicles," said automobile market
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