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September 9, 2009

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Home » Business » Auto

New-energy sector warning

WHILE China is actively promoting new-energy vehicles, car makers should take action to avoid redundant construction and oversupply, a government official has warned.

"The research and development of alternative vehicles has also been carried out among some unqualified car makers and regions," said Xin Guobin, director of the policy department from Ministry of Industry and Information Technology, at an industry forum in north China's Tianjin. "This could both harm the usage of investment and slow the pace of industrialization while risking repeated construction and oversupply."

Car makers such as BYD Automobile Co and SAIC Motor Corp have invested heavily in rolling out new-energy vehicles as China bids to lead the global industry.

The nation hopes to have 60,000 alternative vehicles on the road by 2012. Xin said about 100 models from 18 auto makers had won production approval since 2007.

"Although new-energy vehicles received high attention and have make great progress, most of the models were in trial operation and the market still suffered problems, including lack of unified standard, supportive infrastructure and backward technologies," Xin said.

"It is necessary to set the technology threshold to make sure those models meet government requirements and ensure safety."


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