Sixteen Chinese car firms, including high-profile plug-in electric hybrid manufacturer BYD, were approved for generous new subsidies as part of a government programme designed to drive adoption of greener vehicles.

An announcement on the website of the Chinese government's National Development and Reform Commission confirmed that 71 hybrid, electric and fuel-efficient models were eligible for subsidies.

Under the scheme, fuel-efficient vehicles will receive subsidies worth 3,000 yuan ($441) per vehicle. The government department said that only vehicles with engines no bigger than 1.6 litres were approved for the incentives.

Alongside the Warren Buffett-backed BYD, fuel-efficient models from a number of high-profile joint ventures were also approved for the subsidies, including cars manufactured by Hyundai Motors' Chinese venture, Shanghai General Motors Company, and the Ford-backed Changan-Ford-Mazda joint venture.
The statement added that the government would expand the subsidy scheme over time to include more green models.

The announcement comes just a few weeks after five Chinese cities introduced a similar pilot scheme that promised subsidies worth up to 50,000 yuan ($7,400) for plug-in hybrids and up to 60,000 yuan ($8,800) off the purchase price of full electric vehicles.