Faced with high energy costs and rising consumer and government concern
over the fate of the environment, the world’s automakers are stepping up
investment in the development of alternative powertrain technologies that
promise to substantially cut fuel consumption and reduce greenhouse gas
emissions.

Much attention to-date has focused on advances by Japanese and American
automakers in the development of hybrid and battery electric vehicles. Toyota’s
Prius has emerged as the best-selling hybrid car in the world. Tesla Motors,
a US-based start-up, has launched its first battery electric vehicle, the Tesla
Roadster. By the end of 2010, GM plans to launch its much-touted Volt hybrid,
while Chrysler has recently announced similar plans.

As the media shines its spotlight on technological advances in more developed
markets, China is quietly laying the foundation to become a global contender in
this emerging industry. Already the world’s second-largest automobile market,
China is set to overtake the United States as the world’s biggest by 2030. If
China’s car fleet grows at the current rate of 12 percent a year, another 270
million vehicles will be added to China’s roads in the next 25 years. By 2030,
the total number of vehicles could reach 287 million – or about 30 percent of
the world’s automobiles by then.

Unless China adopts newer technologies that are substantially more fuel-
efficient and environmentally-friendly, such a large automobile fleet will place
enormous strain on energy resources and the environment. Assuming the
continued predominance of gasoline and diesel-powered automobiles, China
will need to import 6.2 billion barrels of oil to fuel its domestic automobile
fleet in 2030. by then, China’s passenger vehicles could be responsible
for generating as much as 20 percent of global passenger vehicle CO2
emissions.

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