China will launch a new subsidy policy for energy-saving vehicles next month in a bid to encourage automakers to increase green-technology investment and reduce oil consumption.

Energy-saving cars weighing between 1,205 kilograms to 1,320 kilograms should consume no more than 6.3 liters of fuel per 100 kilometers in order to obtain subsidies as of October 1, the Ministry of Finance said in a statement on its website.

The current policy, introduced in June last year, provides subsidies to models within such weigh range that have maximum fuel consumption of 6.9 liters per 100 kilometers.

The subsidies will remain unchanged at 3,000 yuan per car. All qualifying automobiles must have 1.6 liter engines or smaller.

China provided subsidies for 2.15 million energy-saving vehicles as of the end of May, said Xiang Dihai, director of the construction division under the ministry, earlier this month.