General Manager of Chery New Energy Company, Yuan Tao, said Thursday that relevant authorities are now planning to issue a policy on hybrid vehicle technology, requiring all new cars to be equipped with the BSG hybrid system for fuel efficiency.
An industry insider from Dongfeng motor confirmed the statement, and said implementation should happen by 2012.
The BSG is a mild hybrid technology that can save about five percent on fuel. Unlike the electric vehicle technology, the BSG is just an innovation of traditional gas-diesel engine and can boost fuel efficiency. Its cost is also relatively low. According to Dongfeng Motor, under mass production, it only costs 1,000 yuan ($147.5) per car to be equipped with the BSG system.
Chinese domestic fuel consumption in 2008 was 540 million tons of gasoline and 520 million tons of diesel. If all the vehicles had been equipped with the BSG system, the annual fuel consumption would have decreased by five million tons.
The Mr. Yuan also said, "Both plug-in and fuel battery technologies belong to electricallization. The traditional engine technology should not be ignored for it will continue to play a leading role in a long time."