The Ministry of Industry and Information Technology will consider the applications, along with those of more than 3,000 traditional combustion engine models, and release a final list of models approved for manufacturing, sale and registration after a period of public comment.

Those final approvals often include a separate list of which electric and plug-in hybrid vehicles are eligible for subsidies and the 207 models that are applying could be included on that list.

This year, the government has already rubber stamped 185 green vehicles to receive subsidies in its first round of road use approvals last month.

China has aggressively promoted green energy vehicles to combat pollution and promote technological innovation, spending billions of dollars in subsidies, although it has stepped up oversight after penalizing dozens of companies last year for cheating the subsidy programme.

Sales of battery electric and plug-in hybrid vehicles plunged 74.4 percent in January under the new regime, which requires companies to reapply for subsidies for each vehicle model, China's automakers association said on Monday.

The list released on Tuesday includes models from BAIC Motor Corp (>> BAIC Motor Corp Ltd), BYD Co Ltd <1211.HK> (>> BYD Company Limited), SAIC Motor Corp (>> SAIC Motor Corporation Limited) and others.

(This version of the story has been corrected to clarify that 207 vehicle models are applying for road use approval not subsidy approval in 1st paragraph. Clarifies that vehicle models may be included in final subsidy list in 3rd paragraph.)

(Reporting by Jake Spring; Editing by Richard Pullin and Christian Schmollinger)