Seven Hybrids Approved for Volume Production in China

Shanghai, May 4 (Gasgoo.com) Seven new-energy models produced by joint ventures and homegrown automakers in China have been granted approval for mass production, reported Information Times yesterday.

The report said these new-energy models, including SVW Passat fuel cell hybrid, SGM 7240, FAW CA7130, and four hybrid buses from Dongfeng Motor, Beiqi Foton as well as Changan Auto, are expected to go on sale one or two months after receiving approval from China's economic regulatory body National Development and Reform Commission (NDRC).

Along with these models, Chery's A5 hybrid has also got NDRC's approval for mass production in early April. The automaker said it would produce the model right after Beijing 2008 Summer Olympic Games, and will price it 10,000 yuan and 20,000 yuan higher than the basic A5 series.

Though the Chinese government wants to boost sales of hybrid vehicles for environmental reasons, it does not offer any incentives for green technology so far, and high prices are keeping buyers away from hybrids.

Earlier in March, FAW Toyota had cut the price of its Chinese-made Prius hybrid car by up to eight percent to help reverse flat sales. FAW Toyota sold only 414 Prius hybrid vehicles in 2007, compared to 2,152 units in 2006.

Dongfeng Honda is also offering discount on its Civic Hybrid in the Chinese market.