"It will be a new challenge for our group, not only in the technology, but also from huge investment and the uncertain market response," said Wang.
Many Chinese automakers are interested in developing electric vehicles. Warrant Buffet-backed BYD Co, launched its F3DM, an electric plug-in model, last December. It plans to take its electric car to the US market late next year.
Chery Auto is set to unveil its electric vehicle QQEV at the end of this month, priced at between 40,000 yuan and 50,000 yuan.
Geely Automobile Holdings said this week that it has teamed up with Taiwan’s Yulon Motor Co to produce and sell electric cars in Taiwan.
Moreover, to support clean energy vehicles, the Chinese government will provide subsidies to green vehicles in five cities selected for a pilot program. The pilot program will then be expanded to subsidize the purchase of clean-energy vehicles for public transportation fleets in 13 to 20 cities.