(Yicai Global) April 10 -- The Shanghai municipal government is already studying guidance policies to help new-energy vehicles completely replace traditionally fuelled cars in order to reduce pollution in the eastern metropolis, according to a local official.

Potential changes include ensuring new vehicles purchased for the public sector are electric and accelerated construction of infrastructure, such as charging piles and hydrogen refuelling stations, Shi Wenjun, deputy inspector of the Shanghai Economic and Information Committee, said at a press conference today.

There were 73,700 NEVs in Shanghai last year, up 20.2 percent, Shi said, adding that this had surged to 249,000 by February, making the city home to more electric cars than any other on the planet. On the flip side, there are still about 480,000 cars over 10 years old.

The next step is to encourage old car owners to swap out their clangers for new, environmentally friendly vehicles made under stricter emissions standards, Shi continued.

In the public sector, he wants to see new policies that force departments covering public transport, sanitation, mail and logistics to replace their combustion engine vehicles with pure-electric alternatives.

Other improvements could involve new service models for automotive financing and leasing, quicker construction of NEV infrastructure, a better used car market and a more business-friendly environment for electric car development, he said.

Local state-backed carmaker SAIC already set up a CNY3 billion (USD447 million) industry fund earlier this year in order to help replace vehicles in the city that were made under older emissions standards.

Since March 1, it has been offering subsidies of up to CNY10,000 (USD1,490) for people trading in older cars for low-polluting fuel vehicles and up to CNY15,000 for NEV buyers The offer will last until the fund dries up or June 30 this year, whichever comes first.

Editor: James Boynton