With relatively mature technologies and less reliance on infrastructure, the plug-in hybrids could be the first to achieve mass commercialization, said Zhou.

But eventually pure electric vehicles will be the future of the industry, given a pressing need to save the planet, Zhou said.

Moving hindrance

For global electric vehicle manufacturers, the hype seems to have gotten ahead of reality. But with a booming auto market and a government keen to cut fossil fuel consumption, many pin hopes on China to become a hotbed where green shoots of the industry can flourish.

The Chinese Government has pledged to allocate unspecified funding to bankroll the construction of charging stations and battery recovery networks in the five pilot cities, paving the way for the green business to take off.

In addition, the government is on the verge of announcing more comprehensive measures to shore up the industry, including tax breaks and financial support, the Economic Information Daily reported.

All the same it will be necessary to avert blind investment and waste of resources, said Zhang Muxiang, Director of the Department of Equipment Industry under the Ministry of Industry and Information Technology.

A number of local governments have joined hands with electricity companies to push forward the infrastructure improvements. Hangzhou, for instance, will build six public charging stations and 500 charging points this year while two stations in Shenzhen have come into service earlier this year. The State Grid Corp. of China even plans to build 75 stations in 27 cities across the nation this year.

In addition, manufacturers have come up with a string of innovative ways to address concerns that keep people from buying electric vehicles.

Chery has tied up with Better Place, a U.S. auto manufacturer, to develop a method of using battery swap stations for long trips in which drivers can simply replace a depleted battery with a charged battery rather than wait for it to recharge.

Meanwhile, the Zhejiang Province-based Zotye Auto Co. Ltd. in January 2010 released a pure electric type Zotye 2008EV. Before putting them on sale, the company has been leasing the cars for 2,500 yuan ($366) per month.

"This has helped overcome the price barrier and familiarized customers with driving an electric car," said Wu Jianzhong, President of Zotye Auto. "We can also get feedback from the customers and address the technological flaws."

The appeal of electric vehicles will shine if gasoline prices continue to soar in the future, said Dong Yang, Secretary General of the China Association of Automobile Manufacturers. "Of course the automakers are also supposed to improve their product reliability, cost controls and after-sale services."

Subsidy Program for New Energy Vehicles

Plug-in vehicles: Up to 50,000 yuan for each

Pure electric vehicles: Up to 60,000 yuan for each

Cars with 1.6-liter engines or smaller that consume 20% less fuel than current models: 3,000 yuan for each