As the Government steps up efforts to cut emissions in the world's biggest auto market, China intends to launch a pilot programme in five cities to provide subsidies to buyers of electric and hybrid cars.

Residents of Shanghai and Shenzhen, as well as Hangzhou and Hefei in the east of the country and Changchun in the northeast would receive up to 50,000 Yuan ($7,320) in subsidies if they buy plug-in hybrid cars, the Ministry of Finance said on its website.

The maximum subsidy for those who bought fully electric cars was 60,000 Yuan, the ministry said.

"The handouts could get people interested in green car models now that the government has come up with a concrete plan and real money to back it up", said Harry Zhao, an analyst with industry consultancy CSM Worldwide. "But it's unrealistic to expect it to work like magic; like tax incentives did last year".

Surpassing the United States as the world's top auto market, Beijing's tax incentives for small cars and subsidies for vehicle buyers in rural areas helped domestic vehicle sales surge 46 percent last year to 13.6 million units.

The brunt of the new subsidies on green car sales was dubious to be hefty in the short term because of high battery costs and a derisory charging network, but would make it easier for those engrossed in cars fuelled by alternative energy to decide to buy such vehicles, analysts said.

Taking cues from the Government, the biggest players in the Chinese auto market, from top state auto group SAIC Motor Corp to rising star Geely Automotive Holding, have been ramping up efforts to bring low-emission vehicles onto the roads.