The new BYD E6 all-electric vehicle sits on display at the BYD exhibit at the North American International Auto Show January 12, 2010 in Detroit, Michigan. [CFP]

BYD said the e6 is a sedan powered by a lithium iron phosphate battery.

The car promises a battery-only range of 330 kilometers on a single charge. The battery can be quick-charged to 50 percent of capacity in 10 minutes, and fully charged in 60 minutes.

Aside from intensifying competition, car makers also face challenges convincing consumers about the benefits of new-energy vehicles as some people worry about inconvenience due to the lack of charging stations.

Auto makers also face issues over heavy batteries, which reduce the efficiency of electric cars, and recycling batteries.

Wang Chuanfu, chairman of BYD, said recently that the car maker is aiming to become the world's largest auto maker by 2025. Last year, BYD saw sales jump 130 percent to 400,000 vehicles. It set a sales target of 800,000 units this year.

At the ongoing Detroit auto show, BYD was the only Chinese car maker to attend. Its lineup also included the F3DM, the world's first dual-mode plug-in hybrid.

Besides BYD's e6, the new-energy vehicles the government approved included Dongfeng's Fengshen S30 and Changan's Zhixiang.