The central government included “new energy” vehicles in its procurement list for the first time in November, amid concerns about whether the technology is mature enough to meet market needs. Putting plug-in hybrids and all-electric vehicles on a list of official government purchases sent a positive signal to the car industry, but a lack of supply and unified standards could hamper demand. Directives issued by the Communist Party and the government aim to curb emissions by limiting the size and power of engine cylinders on new government vehicles from 2 liters to 1.8 liters. It also reduced price limits from CNY200,000 to CNY180,000. Chen Jian, Director of the International Technology and Economy Institute under the Development Research Center, said officials would encourage the use of these cars by offering preferential parking and toll fees, among other measures. Experts say electric vehicles, which can travel about 200 kilometers per charge, are suitable for official use since most government business involves short-distance travel within cities. Yu Cong from the National Development and Reform Commission’s Energy Research Institute welcomed the latest directives, but said new energy cars suffered in the market because of high production costs and functions that lagged behind traditional cars.