SHANGHAI -- Shanghai has added 40,000 license plates of non-commercial vehicles to its annual quotas for the year to spur car sales, local authorities said Thursday.

Qiu Wenjin, deputy head of the Shanghai Municipal Development and Reform Commission, said the new policy was implemented in March, with more license plates issued in March and April compared with that in the past.

Shanghai is also promoting new energy vehicles (NEVs), which are not subject to license plate restrictions. In addition to central government subsidies and purchase tax exemptions, consumers in Shanghai who purchase NEVs will get 5,000 yuan (about $706) in subsidies from the municipal government for charging costs.

The city plans to replace some 2,500 buses with new energy ones and put into use some 5,000 pure electric taxis to replace oil-fueled ones within the year. Five new hydrogen refueling stations will also be built in Shanghai by year-end.

Qiu said although the COVID-19 outbreak has brought increasing downward pressure on automobile consumption since the beginning of the year, there is still room for growth considering the long-term positive prospects of China's macro economy and the increasing demand for smart and green transportation of Chinese consumers.