The government of Central China's Wuhan said on Tuesday it launched an investigation into irregularities involving the city's taxi fleet.

Authorities had promised to launch a probe on Sunday after China Central Television reported that day that about 13,000 new taxis in Hubei province's capital city have faulty brake systems.

"After the media report we have set up two special teams to investigate the quality and security of the vehicles, and possible corruption activities," Liu Liyong, deputy mayor of Wuhan, said at a press conference.

"Those involved in corrupt activities, if found, will be punished according to the law," Liu said.

CCTV reported that taxi companies in Wuhan had to pay the local taxi management authority about 100,000 yuan ($15,915) for each car, while the same vehicle can be bought for about 62,000 yuan elsewhere.

The report said that although the Elysee-brand vehicles, made by Dongfeng Peugeot Citroen Automobile Co, lack antilock braking systems — known as ABS — and their brake discs are smaller than they should be, they were sold to taxi drivers for about 40,000 yuan above market prices.

The owner of a taxi company in Wuhan told CCTV that the types of cars that can be used by firms in the city are decided by local authorities.

Some taxi drivers in the report said that they had been through several rear-end collisions since they started using the new cars.

Most of the 13,000 new taxis were put into use in Wuhan between September 2011 and March, the report said.

The government has asked an independent institute to conduct comprehensive quality tests on the taxis, Chen Youxiang, vice-director of Wuhan's transport commission, said at the press conference on Tuesday.

Authorities also asked Dongfeng Peugeot Citroen Automobile to conduct a thorough investigation on all the vehicles on the same day the report was broadcast, Chen said.

The company will provide tests and repair services to taxi companies, he added.