China vies to be world's leader in new energy vehicles

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China has set a target for alternative-energy automobiles. By 2011, the country is going to be able to produce 500,000 units of new energy cars annually.

China has adopted a plan aimed at turning the country into one of the world's leading producers of hybrid and all-electric vehicles within 3 years.

Many domestic car makers are working on technology upgrades to develop environmentally-friendly vehicles. Beiqi Foton Motors is one of them. The firm is about to deliver 50 new energy buses to Beijing Public Transported Holdings in just a few days.

Zhao Jingguang, Spokesman of Beiqi Foton Motor said "Our products have good mileage and emission standards. Fuel efficiency is nearly 25 percent higher."

Foton developed its first hybrid vehicles in 2005. But the high price scared away many buyers.

Zhao Jingguang said "A traditional bus only costs 500,000 yuan tops. But a hybrid one is priced at over 1 million yuan. So it will take more than 3 years to return the extra investment. "

China launched a trial program in February to promote the sales of new energy passenger cars in several cities. The country subsidized buyers with up to 600,000 yuan per vehicle. The move has boosted sales and also motivated more car makers to develop electronic vehicles.