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Chang'an Motor rolls out hybrid
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Chang'an Motor Corp, a partner of Ford Motor Co, yesterday rolled out a petrol-electric car, the first commercially produced model of its kind under a Chinese brand.

 

The model, which twins a 1.5-liter conventional petrol engine with an electric motor to improve fuel efficiency by 20 percent, will go on sale next year, Chang'an said, without providing a sales target.

 

The fourth-largest Chinese auto group based in the southwestern municipality of Chongqing said it would spend 300 million yuan by 2012 to introduce more hybrid models and carry out research.

 

A slew of local carmakers and global auto giants are also planning to launch hybrid cars in China.

 

Japan's Toyota, the first automaker to introduce hybrids in China, started making its Prius with FAW Corp in 2005.

 

US automaker General Motors said last month it would produce a hybrid model in China next year.

 

SAIC Motor Co, the top Chinese automaker, also plans to launch a hybrid sedan in 2008.

 

Hybrid vehicles have tremendous growth potential in China, the world's second-biggest oil consumer, as they are more fuel efficient and environmentally friendly than conventional vehicles.

 

However, hybrid sales in China remain negligible because they are much more expensive. Toyota only sold 2,000 Prius sedans in China last year.

 

Analysts said policy incentives like tax cuts are badly needed if hybrid sales are to take off in China.

 

Chang'an said it would also boost research in vehicles powered by other new energy resources, including hydrogen, pure electricity and biofuels.

 

The company said it plans to invest a total of 4 billion yuan in new product development within the next three years. Chang'an also signed an agreement with six Chinese universities yesterday to collaborate on automotive research.

 

The company plans to launch 36 new own-brand models by 2010.

 

Chang'an said it aims to sell 2 million vehicles a year by 2010, with three-fifths from its own nameplates. Its sales are expected to hit 850,000 units this year.

 

It runs a joint venture with Ford and Mazda. It also has a tie-up with Suzuki.

 

(China Daily December 14, 2007)

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