(Yicai Global) July 6 -- Shanghai, China's largest producer of new energy vehicles, has joined a slew of other regions to encourage NEV purchases via generous subsidies.

The next few months till December will be the best time to buy an electric vehicle, Wu Jincheng, director of the eastern city's economic and information technology commission, said yesterday. The subsidy for cars priced at CNY200,000 (USD29,833) will range from CNY20,000 to CNY50,000 (from USD2,549 to USD6,371).

The metropolis has big plans. By 2025, Shanghai will strive to produce more than 1.2 million NEVs, and the market scale should exceed CNY350 billion (USD44.6 billion), making the city a world-class automotive industrial center, per Wu.

In the first half of this year, Shanghai produced more NEVs than any other Chinese city at 420,000 units, rising about 30 percent from a year ago, according to Wu. The city's output was 630,000 NEVs last year, accounting for one-fifth of domestic sales.

The whole country is offering consumers a carrot to buy energy-saving cars. The central government cut the purchase tax of electric passenger vehicles by half from June to December. The policy is for cars priced below CNY300,000 with two-liter engines and below.

Shanghai is a good place to buy a NEV. The first reason is variety. Consumers can choose from 112 car companies, 125 brands, and 1,110 new energy models, per Wu. Moreover, local car companies, including SAIC, have increased their subsidies on top of the national policy. Some have even covered the other half of the purchase tax. Finally, the eastern city has recently added 40,000 license plates to its annual quota.

Different districts of Shanghai are making their own plans. Jiading, known for car factories, gives subsidies of CNY10,000 for new cars priced below CNY150,000, and CNY20,000 for cars costing more than CNY150,000, Wu said. Pudong and Lingang are also developing supportive policies, he added.

Editors: Emmi Laine, Xiao Yi