China to use new energy vehicles in public transport

BEIJING--China is expected to issue policies in favor of new energy vehicles this year, according to Xinhua-run Shanghai Securities News. The main beneficiary is the vehicle used in public transportation, the paper noted.

For China's new energy application in automobiles, public transportation is where the technology gets ripest development. Many auto enterprises have debuted new energy buses. During Olympic period, 500 new energy autos are in operation, with about 100 buses powered by fuel cells, lithium ion batteries, hybrids and etc.

Some domestic new energy cars will also be favored by the preferential policies when the technology is ripe. The National Development and Reform Commission has formulated 75 standards for hybrid, gas powered and electric autos. Some up-to-standard products have been put in urban public transportation.

In the second quarter, many domestic auto enterprises got approval to produce new energy autos. Included are Shanghai Volkswagen and Shanghai GM with its fuel cell and hybrid passenger cars, and Dongfeng Motor Corporation (600006), Beiqi Foton Motor and Changan Auto (000625) with hybrid commercial vehicles.

The first half of this year saw the sales volume of China-made new energy cars up 107.95 percent year on year to reach 366 units, and the sales volume in June climbed to 100, disclosed China Association of Automobile Manufacturers.