Alternative cars were prominently featured at the recent Shanghai auto show and the government made developing such cars over the next three years a strategic goal for the domestic auto industry.

They have overwhelming advantages in energy-saving but there are still many obstacles preventing their widespread use.

Alternative energy cars cost much more than conventional cars. Consumers tend to be price-sensitive and few are willing, so far, to pay the higher prices.

Manufacturers should make more efforts to cut costs in the energy-saving technology used in such cars.

The government should create policies and give capital support to help promote energy-saving and environment-friendly cars.

A lack of service networks is another challenge. People in conventional cars can go everywhere because there are gas stations across the country. There are no recharge stations for electric cars yet.

Service networks need to be built before people will start to buy alternative energy cars in large numbers.

China Business News

(China Daily 05/04/2009 page2)