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A leading Chinese car manufacturer said Wednesday that it plans to invest 3 billion yuan (US$375 million) in the research and development of low-emission cars.

 

The investment plan of the Chongqing-based Chang'an Automobile Company Ltd. followed the latest government policy that cancels restrictions on low-emission and economical cars.

 

The National Development and Reform Commission (NDRC), China's top economic planning agency, issued a circular on Jan. 4, encouraging auto manufacturers to put an eye on the market of low-emission cars as the country is working to control the aggravating urban air pollution, partly attributable to the growing number of motor vehicles.

 

Chang'an, holding the biggest share of 37 percent in China's economical car market in the past six years, also announced that it would put two new types of cars, including one economical, into the market later this year.

 

Yin Jiaxu, chair of the board and president of the company, hailed the cancellation of policy restrictions against economical cars.

 

"Chang'an has been lobbying for loosening limitations on low-emission and economical cars for seven years," Yin said. "Although we have met difficulties along the way, we always believed that the restrictions would be lifted when the whole society has enough concern about it."

 

The advantages of low-emission cars would become more obvious as the oil price soars high and consumers are more sober-minded in choosing cars.

 

"It might be a right choice for them to buy low-emission cars," Yin said.

 

According to statistics, China witnessed a 93.69 percent increase in the sale of cars with emission under one liter in the first nine months of 2005.

 

(Xinhua News Agency January 11, 2006)