China will roll out a new package of policies to support hydrogen fuel cell vehicles to improve the industry’s supply chain and technologies, a government official said in an interview.

China is the world’s biggest market for new energy vehicles (NEVs), which include battery electric vehicles as well as plug-in hybrid and hydrogen fuel cell vehicles.

Current policies to support NEV makers offer subsidies on sales, but the new policy will focus on helping companies which have and are developing breakthrough technologies, Song Qiuling, a senior finance ministry official, told a conference hosted by the China Automotive Technology and Research Center (CATARC) in Tianjin.

New supportive policy will focus on vehicles for long-distance logistics such as heavy duty trucks, Song said.

She also said city governments would be encouraged to develop a hydrogen fuel cell vehicle industry with local companies to build up a more mature supply chain.

Song did not offer details of the new policy.