Shanghai has issued 1,436 free license plates to electric car buyers by June this year, as a way to encourage people to use green cars, the city government information office said at a press conference on Tuesday.

"While more free license are being given to electric vehicle (EV) buyers every month, this June saw a significant growth in free license issuance, suggesting that the sales of EVs are improving in the city," said Ma Jing, deputy director of Electric Vehicles Development at the Shanghai Municipal Commission of Economic and Information Technology.

China's state council, or cabinet, said last week that buyers of new energy vehicles - fully electric, hybrid and fuel cell cars -- would not have to pay the purchase tax, which is 10 percent of a vehicle's net value, from September to the end of 2017, according to a statement.

Ma said Shanghai will follow the direction of the state council and scrap the purchase tax from September. It will also take the lead from the state council in announcing the list of eligible vehicles soon.

More than 1,000 electric cars have been sold during the first six months this year. Last year, the sales number was 581, he added.

The Shanghai municipal government has set a target to put 13,000 green vehicles into use by the end of next year, and among them more than 30 percent will be brands out of Shanghai. A total of 1,800 charging spots will be installed around Shanghai by the end of 2014, with another 2,400 ready for use by the end of next year, according to the latest timetable.

Tax break for new-energy vehicles	Policy shift will jolt new-energy vehicle market