China to invest in eco-friendly electric vehicles

Shanghai, March 31 (Gasgoo.com) Chinese automakers are going ahead with producing energy-efficient, eco-friendly electric vehicles after the government has planned to invest around $1.5 billion in the sector over the next three years, xinhuanet.com said recently.

About 500,000 electric and hybrid cars will be produced annually by 2011, accounting for an average 10% market growth each year. The Chinese auto market is projected to pass Japan to be the world's second largest car market this year and overtake the United States to become the world's largest by 2020.

The government funding for electric cars is part of a huge investment of $30 billion in alternative fuel vehicles before 2012. The money will serve to develop, promote and maintain public transportation vehicles powered by alternative fuels. China has recently announced that 60,000 alternative-fuel vehicles will have trial run in 11 cities.

China also plans to boost the ownership of green private cars through preferential tax rates for carmakers who develop and make fuel-efficient cars and consumers who buy low-emission green cars.

BYD Auto released its F3DM model to the Chinese market in December 2008 as the world's first mass-production plug-in hybrid electric car in the dual mode. BYD will also launch its F6DM this year. These Chinese-made electric cars are expected to enter the U.S. and other global markets by 2011.

Chery Auto, the largest domestic car producer in China, launched the S18 model last month as its first foray into the electric car market. The S18 is able to travel up to 90 miles on a single charge. It can be fully charged in four to six hours from a household socket.

Chinese automakers are going to transform the auto market with their new crops of green vehicles.