Will China become hub for alternative powertrain vehicles?

China’s automotive market is beginning to slow down in terms of consumer purchases and the country’s current draft policies are making foreign automakers hesitate about committing to setting up local production.  The country is setting targets for the development of electric vehicles and alternative powertrain vehicles, but it will require  attractive incentives for Chinese consumers to purchase EVs.  In light of recent government mandates limiting the foreign ownership of plants producing car parts for EVs, foreign automakers are wary of what new guidelines will be proposed in the future.  Carlos Ghosn, chief executive officer of Nissan, indicated recently that the company will introduce its Leaf electric vehicle to China, but it has not decided whether to produce the vehicle locally.  Ghosn said, “The stakes are so big that we cannot afford to go for massive investments without knowing exactly what the rules are.” (June 23, 2011)