(Shanghai Daily, Nov 29, 2006) FROM hybrid models to fuel cell technology and diesel engines, car makers are working toward alternative fuels for the fast-growing Chinese market.

As hybrid technology and fuel cell cars are still some time away from mass production because of their high costs, car makers are pinning their hopes on diesel, the most mature technology and a popular gasoline alternative in the rest of the world.

However, restrained by quality, the popularity of diesel may still have a long way to go in China.

"There is no technical problems for China to make diesel that could meet the Euro 3 emission standards," said Zhang Jianwei, vice director of the China Automotive Technology Research Center, referring to a benchmark European standard for fuel cleanliness.

"Diesel, the main energy for farming vehicles, used to be kept at a low price to protect farmers' interests. This led petrol chemical companies to be less inclined to step up measures to improve quality."

Diesel models accounted for 1.2 percent of total car sales last year compared with up to a 60 percent market share in European countries.

But this has not stopped car makers unveiling more diesel models with advanced technology at the 2006 Beijing International Automotive Exhibition, which ended on Monday.

Volkswagen AG were just one of the international auto giants with diesel technology on show, at the exhibition. The German company gave its Asia debut of the Concept A, a mix of sports car and sport utility vehicle powered by a diesel engine with the latest Turbo Direct Injection technology.

China's Chery Automobile Co Ltd launched a diesel version of its V5 concept cars while Brilliance Automobile Co Ltd, the Chinese partner of BMW AG, unveiled a diesel version of its most popular model, the Junjie.

Mercedes-Benz Group held a grand ceremony at Yongdingmen, one of Beijing's oldest royal gates, to celebrate the arrival of 36 diesel Mercedes-Benz E-class sedans from Paris.

In addition to the growing number of SUVs, which were the first models to use diesel, the intensive launch of diesel sedans reflect car makers' intentions to focus on the market since the government approved measures to encourage more energy efficiency and greener technology.

Diesel engines can save up to 25 percent to 30 percent more fuel than gasoline, and CO2 emissions can be reduced by up to 40 percent.

If diesel-engine use rises to 30 percent of the market by 2020, China can lessen its dependence on foreign oil by 10 percent, according to the National Development Research Center.

Not only car makers, automotive parts suppliers are also keen to enter the huge market with continuous investment, aiming to catch up with the trend in advance.

Bosch Group, the world's leading auto parts maker, announced plans to double its investment in China with another 620 million euros (US$815 million) from this year through 2008, mainly focusing on diesel products, according to Peng Deyuan, president of Bosch (China) Investment Co, Ltd.

Since the beginning of the year, the auto parts giant has invested 160 million euros in building two plants in Changsha, Hunan Province and Suzhou, in Jiangsu Province. Another 100 million euros will be used to expand the two plants.

Claude Satinet, the general manager of Citroen Group, said the company was looking forward to launching its advanced diesel models on the Chinese market, "But they need more support from government policy and diesel quality in addition to the engine itself."

Car makers are eying other energy alternatives, not least because of the high price of oil over the past few months.

Suzuki, Mazda and Renault unveiled models that use hybrid technology, fuel cells and hydrogen-powered engines at the Beijing auto show.

United States auto maker General Motors Corp showed off its new hydrogen fuel cell-powered Sequel in Beijing in addition to a Saab 95 powered by ethonal and gasoline.

The fuel cell battery in the Sequel has a range of 480 kilometers and will soon be fitted to General Motors's Chevrolet Equinox fuel cell models, which will start tests in the North American market in the autumn of next year.

Source:Shanghai Daily