Chinese authorities are to unveil a plan to boost sales of green cars by offering consumers subsidies, local press reports said today.

The government will unveil details of a plan expected to offer up to CNY60,000 (US$8,789) for each purchase at the end of the month, Shanghai Securities News said.

Pure electric vehicles will attract a subsidy of CNY60,000 each, plug-in hybrids and normal hybrids will attract a smaller subsidy, the report said.

China is set to become an important battle ground for the electric drive market. The authorities there have set an industrial policy with the objective of becoming the largest EV developer and manufacturer in the world.

HSBC research predicts that China's share of the global EV market will grow from 2.7% this year to 35% by 2020. During this time period, China will overtake Japan by 2016 and the US by 2019 in dominating the global EV market.

The Chinese government will start an electric vehicle funding initiative this July, while charging stations are due to be established within a few years.