CHINESE auto makers are going from strength to strength since China surpassed the United States as the world's biggest car market last year.
And while overseas competitors may be green with envy, Chinese car makers are seeing green themselves as they position themselves in the race to develop eco-friendly hybrid and electric cars.
Could China really become the world leader in the field? It's possible but it won't be easy.
Looking back over the history of automobile development, mass production helped the United States replace Europe as the world's auto-making heartland. Then Japan entered the fray and caught up with its lower production costs.
Now the industry's evolution is moving on toward more eco-friendly cars, is providing great opportunities for emerging countries, industry watchers and experts said at the Global Auto Forum in Chengdu in September.
"China's large market potential, government support and comparatively low price base may help domestic auto makers compete and even surpass foreign rivals in the electric car sector," said Wang Beili, chief executive officer of the China Automobile Association.
Chinese car makers have certainly shown their prowess for great leaps forward in the past decade - 13-year-old domestic auto maker Geely took over 83-year-old Volvo. Seven-year-old BYD debuted the plug-in hybrid F3DM this year, one year ahead of rivals from both home and abroad. Great Wall Motors began exporting cars to Europe only seven years after its first vehicle rolled off the production line.
The challenge now is to repeat the miracle in the realm of electric cars. It's a race where China is pretty much at the same starting line as overseas auto makers.
Powering cars by battery isn't exactly a new idea. Way back in the early 20th century, one-third of vehicles on the streets of New York, Chicago and Boston were powered by batteries. Battery makers were eager to plunge into auto-making, just like BYD did more recently, but what was cutting edge technology in that day failed to find a commercial market due to higher costs, slower speeds, long charging times and shorter driving ranges.
Pitfalls remain
Those limitations have dogged the development of electric cars for decades, and they still pose pitfalls today. Industry insiders said the technology for mass production of hybrid and electric cars still hasn't been perfected.
Xiao Guopu, vice president of SAIC Motor Corp, the country's second-largest auto maker, admitted there is still some technology gap between domestic makers and foreign counterparts.
"Basic auto parts and overall auto performance are relatively weak compared with foreign makers," said Xiao. "In particular, the advantages of foreign brands will show in terms of long-term use."
He admitted his company's Roewe 550 hybrid compact sedan sourced electric motor from Siemens, while batteries came from US A123 Systems. SAIC has reportedly been in talks with BYD, South Korean and other foreign battery manufacturers.
Wei Jianjun, chairman of Great Wall Motors, agreed.
"There is still much to be learned from global giants in the electric car sector," said Wei, citing the example of battery technology. The battery is one of the most important components in electric cars and most of the bottlenecks involve the battery performance and longevity.
Batteries made by leading global manufacturers can be charged 3,000 times, while those developed by Chinese makers, only 2,000 times, before they have to be replaced at a large cost.
China's auto makers are counting on Chinese government financial support to develop, manufacture and popularize electric cars.
China plans to invest 10 billion yuan (US$1.5 billion) to speed up the commercialization of new-energy vehicles. The nation is aiming to have 500,000 green cars on the roads by 2012.