CHINA FORMS ELECTRIC VEHICLE INDUSTRY ASSOCIATION

By Vincent Low Seng Guan

BEIJING, Aug 19 (Bernama) -- Sixteen Chinese state-owned enterprises have
teamed up to form an electric vehicle industry association in Beijing aimed at
developing electric cars.

According to a Beijing Times report, the association aimed to integrate
technological standards and help Chinese companies master key technologies
in making electric vehicles.

It was also expected to build an effective information sharing system that
allowed automakers, battery producers, related services and government bodies to
exchange information.

The companies are anticipated to invest a total of 100 billion yuan (US$14.7
billion) on electric vehicles by 2012.

The report also said major players in the association included China FAW
Group, the Dongfeng Motor Corporation, Chongqing Changan Automobile Co, China
National Petroleum Corporation, the National Power Grids, China Petroleum &
Chemical Corporation and China National Offshore Oil Corporation.

The move was in response to the government's latest policies to boost the
country's electric vehicle industry in line with China's intention to improve
energy efficiency and reduce pollution.

In 2008, the central government launched a national campaign aimed at
putting 1,000 electric vehicles on the roads in at least 10 cities each year to
encourage people to buy electric cars.

The Ministry of Finance, in June, kicked off an incentive policy in
Shanghai, Shenzhen, Hangzhou, Changchun and Hefei by providing subsidies of
60,000 yuan for the purchase of a pure electric vehicle and 50,000 yuan for a
plug-in hybrid vehicle.
-- BERNAMA