The Chinese government is currently offering subsidies and incentives for electric car buyers in a bid to help address the country's pollution problems. However, local drivers are still hesitant to buy green vehicles even with the availability of lower-priced vehicles.

German car maker Daimler and Chinese electric car manufacturer BYD has formed a joint venture called Denza to support China's goal to increase usage of green vehicles. The Denza electric car is priced at $59,100 (CNY369,000) and will be on the market starting September. This price is considerably lower compared to Tesla's similar model which costs $117,500 (CNY734,000). 

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China is on a mission to decrease the country's air pollution levels. The government is aiming to push five million green vehicles on China's roads by 2020. The Chinese government is also helping to promote the Denza car by offering a maximum subsidy of CNY120,000 deductible from every purchased car. Aside from that, a cash handout of CNY60,000 is also being offered to electric car buyers. Still, 2014's first quarter has only seen 7,000 electric and hybrid cars sold in China. 

According to consumers, the price of the electric vehicle is not the main problem. The issue lies in the lack of battery-charging facilities in China's cities and the inconvenience involved in buying a new car. Chinese drivers typically have to apply for a license plate via lottery system. This method limits the number of cars running on the road. Daimler said Denza will not be included in this system. Moreover, Shanghai and Shenzhen buyers will be able to get free license plates.

To encourage more people to buy green vehicles, the State Grid Corporation has made 19,000 electric car charging piles and 400 charging facilities. In March, the national power supplier will be partnering with private investors to develop fast-charging electric car stations. Additionally, the municipal government of Beijing is working on a deal with 12 property developers to install similar facilities at residential areas and shopping centers. Tesla has also committed to build hundreds of charging stations across China.