Car buyers in Shanghai can get up to 60,000 yuan in government subsidies if they buy a 100 percent electric car. This is part of the new green car subsidy program launched by central government for cutting carbon emissions. The pilot program includes four other cities...Hangzhou, Shenzhen, Changchun and Hefei. Auto makers say incentives like this are important for reducing the industry's dependence on petroleum. But more is needed.

The infrastructure is also important for creating incentives for electric cars. Universities, power supplies, and other large utility companies must collaborate to prepare the grid and charging stations.

He says electric cars are unlikely to replace diesel cars in the near future, because most electric cars have limited mileage due to battery capacity.

But...auto-makers are confident that electric-powered vehicles WILL take up to a quarter of the market share by 2025. Many car manufacturers including General Motors, BYD and Toyota are producing plug-in hybrid cars that can run up to 450 kilometres per charge. And they could be on roads next year.