China announces large-scale electric, hybrid vehicles project

Sixteen large state-owned enterprises (SOEs) have agreed to form an alliance that will develop and created standards for electric and hybrid vehicles, the New York Times reported. The plan was announced by the State-owned Assets Supervision and Administration Commission (SASAC), which oversees China’s 125 largest SOEs. SASAC said the alliance would have an initial budget of US$200 million, but some state media reports claim that the government will invest nearly US$15 billion in the venture. This would make it one of the world’s largest energy-efficient vehicles projects and underline what Beijing describes as its growing commitment to combating pollution. SASAC gave few details pertaining to the plan, although the government wants to release 500,000 energy efficient vehicles into the market each year over the next three years. It expects such vehicles to account for 5% of total passenger car sales in China, which are likely to reach 17 million in 2010.