Jiading District is to offer a 40,000 yuan (US$5,815) subsidy for each “new energy” cargo vehicle bought by logistic companies in the district.

The scheme, which runs until the end of next year, is aimed at curbing air pollution, the Jiading government said yesterday.

The district will subsidize a total of 100 new energy cars that either offer electric or hybrid options for courier and cargo transportation.

The idea is to encourage more courier firms based in the district to promote green energy vehicles, the government said.

Logistic or courier companies registered in Jiading for more than six months that pledge to operate new energy cars for at least a year can apply for the subsidies.

Nitrogen oxides exhaust gases of local cargo transportation vehicles amount to about 57,000 tons per year and account for more than 60 percent of the city’s total vehicle emissions, the city’s transport authority estimated.

Electric vehicles can cut the pollution, while also reducing fuel costs by 30 percent compared with traditional gasoline vehicles, the authority added.

The city government said it would issue the first batch of 3,000 driving passes to electric or hybrid cargo vehicles to encourage courier firms and logistic companies to promote green energy vehicles.

The Shanghai-based YTO Express told Shanghai Daily yesterday that it had provided a large number of electric vans and tricycles to its deliverymen, but many others were still driving traditional gasoline cars and motorcycles to deliver parcels.

The district, where the city’s “international automobile city” is sited, also announced an additional 15,000 yuan subsidy for individual buyers of new energy cars, in addition to the 30,000 yuan subsidy offered by the city government.

The government bodies, companies and social organizations in the district can also receive the 15,000 yuan subsidy by buying a new energy car.

With the new incentives, the district government aims to increase by 7,000 the number of new energy vehicles across the district to a total of 11,000 by the end of next year.