A report from the Chinese-based Global Times suggests that the automotive industry in China is about to take a dramatic turn. As reported, Chinese lawmakers are discussing a revamped automotive policy that includes a requirement for all new passenger vehicles to come equipped with hybrid technology beginning in 2012. General manager of Chery New Energy Company, Yuan Tao, said that Chinese officials are currently inking out the details regarding the hybrid technology requirement. An insider from Dongfeng Motor Co. confirmed the statement from Yuan Tao and added that implementation should begin by 2012.

The report suggests that all new passenger vehicles produced in China beyond 2012 will be required to carry mild hybrid technology that's commonly referred to as a battery-alternator-starter setup (BAS) or, as the Chinese like to call it, a battery-starter-generator (BSG) system. The BSG mild hybrid system can reduce fuel consumption by about five percent and is less costly than many other fuel-saving technologies. As Dongfeng Motors told the Global Times, under mass production, a BSG system only costs $147.50 (U.S. at the current exchange rate) per car. If costs are truly this low, then the decision to require automakers to equip vehicles with this hybrid technology seems like an obvious choice as China actively seeks out methods to reduce its gasoline consumption and abate its smog problem. There's sure to be more on this developing story, so check back soon.

[Source: Global Times]

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