A number of major eastern automotive industries in Asia are targeting emissions reductions following a recent round of legislation.

Chief among these countries is China, which has confirmed it is to offer a tax rebate for cars meeting new European emissions standards.

From July 1st 2004 China will offer a 30 per cent consumption-tax rebate to vehicles that meet EU3 standards.

The news follows details of an announcement from South Korea, where the National Assembly has passed a bill to confer full authority on local agencies to impose emissions controls.

The prime aim of the directive is to improve air quality in the nation's capital, but it has been given a nationwide remit.

Under the new law the Ministry of Environment is able to intervene in the region's automobile markets in order to encourage sales of low-emissions vehicles.

It also says that government agencies and other public organisations should operate low emissions vehicles to an as yet unspecified quota.