A picture of BYD F3DM, the world's first DM electric car. [Photo: madeinchn.cn]

Although domestically developed electric cars have been stealing the media spotlight in recent years, Zeng Qinghong, General Manager of Guangzhou Automobile Group, said it is dangerous for China's auto industry if every automaker devotes themselves to electric car research.

"Developing new-energy vehicles could help with energy issues, but it is more important to develop energy-saving techniques based on our current vehicles," Zeng suggested in an interview with sina.com, claiming "we never know when mature new-energy techniques will come and when the new-style cars can be produced in large numbers."

Encouraged by the attention paid to 'new energy' vehicles in China's recent stimulus policies in the auto industry, some local governments including southwest Chongqing Municipality and northeast Jilin Province, have announced the forming of  a 'new-energy auto alliance' to benefit local businesses through the development of hybrid or electric vehicles, following the first such alliance formed in Beijing.

An analysis in the 21st Century Business Herald said other districts like east Anhui, central Hubei, and southern Shenzhen will probably take similar steps to set up new-energy auto industry bases, which will undoubtedly cost a lot of money.

What is noticeable is that some industry outsiders have shifted their attention to the auto businesses.

Beijing Jianlong Group, whose main services cover steel and ship making, will invest 1.5 billion yuan (219 million U.S. dollars) in developing lithium batteries and driving motors used for electric cars.

However, chief editor of Auto World, Wu Yingqiu's words may disappoint local governments and enterprises.

He believes traditionally powered engines will dominate the auto industry for the next 20 years or so. Top leaders from the world's auto giants like General Motor, Ford and Mercedes Benz are also of the same opinion, he added.

In response to domestic carmakers' throwing their full weight behind 'new-energy' auto development, Zeng Qinghong advises domestic automakers not to stake their lot on electric cars, while Wu said it would be better if a national research team was set up, indicating the energy-saving technique is money-consuming.