The government of northwest China's Shaanxi province has signed a preliminary agreement with Samsung SDI Co Ltd of the South Korea to establish China's largest car battery plant and expects to break ground in the second half of this year.

Beijing will construct five large to medium-sized charging stations and 35,700 charging posts for electric vehicles and plug-in hybrids, as well as two hydrogen stations for fuel cell cars.

Tesla attempts to steer China toward awarding it incentives

Low charge in new-energy initiative

Benefiting from top-down policies, China's auto manufacturers are making their own plans to expand the new energy vehicle market.

BYD Auto Co Ltd, a Chinese automobile manufacturer based in South China's Shenzhen, has strong sales of electric buses and taxis, which are frequently seen in Shenzhen and in the provinces of Shaanxi and Hunan.

The proportion of new electric coaches in use has grown quickly from 2 percent in 2010 to 9.9 percent in 2012. The figure is expected to approach 20 percent in 2013.

Jia Xinguang, an independent auto analyst, believes electrification of public transportation services should be supported by government policy.

Hongyuan Securities reached similar conclusion, predicting 20,000 electric coaches would be sold this year and 40,000 in 2015.

Electric family cars still have a bumpy road ahead, according to the brokers, because of a lack of infrastructure, safety concerns and purchasing traditions that give price-sensitive potential customers cause for concern.

Tesla Motors Inc, based in the United States, which makes high-performance electric cars, generated a buzz in the US and Europe and is bringing confidence to Chinese car buyers and improving their ecological awareness.

Zhang Junyi, an auto analyst with Roland Berger Strategy Consultants, said "Tesla could be a catfish put into the sardine pool of China", adding dynamism to the sector.

Xinhua

Tesla model S in Beijing experience store	New cars at Chicago auto show