China aims to be global leader in eco-car market

The Chinese government is eyeing a program worth 100 billion yuan (US$14.72 billion) to develop energy-saving, new energy-driven automobiles over the next 10 years, according to local newspapers. Under this ambitious program, China wants to take the lead in the global eco-car market by selling 5 million plug-in hybrid and electric vehicles by 2020, while raising annual sales of hybrid vehicles to 15 million units by the same year. In setting standards for electric vehicle for electric vehicles, China agreed last November to cooperate with the United States, demonstrating its proactive attitude. However, only vehicles manufactured in China by Chinese automakers are eligible for government subsidies under the program. As hybrid cars manufactured by non-Chinese automakers are excluded from the programs, foreign firms see them as being primarily designed to promote the domestic auto industry, rather than focusing on environmental protection or economic stimulus. (August 14, 2010)