Makers of alternative energy cars are revving up their China efforts. Global brands such as BMW and Mercedes-Benz are targeting electrics, while a newer name, Tesla is also jockeying for position.

The engine is traditionally the heart of a car. But US electric car maker Tesla, replaced the heart with high-intelligence softwares. This "run-without-engine" car has been introduced in Europe and is coming to China. By end of this year, Tesla will take orders in Hong Kong and set up a service center in Beijing.

"By analysing the business arrangements of major multi-national car-makers, on the one hand, they are promoting strongly in their home markets, on the other hand, they all consider China as target market in their near-future plans. It’s likely that China will be the most important and most competitive market for overseas electric cars." said Wan Gang, Minister of Science & Rechnology of China."said Wan.

Insiders say China not only has great potential, but also the policy framework for an electric car industry.

"After ten years of development, China has basically set up the electric car industrial structure, such as standards for whole cars and components and government policies."said Zhao Hang, President of China Automotive Technology&Research Center.

China’s electric cars incentives program is three years old. Take Shanghai as an example, buyers of electric cars can save about 180 thousand yuan, or 30 thousand U.S. dollars compared to ordinary fuel cars.