Zotye 2008EV, produced by Zoytec Auto, is available for lease in Hangzhou. The electric car can reach a top speed of 110kph, with a range of 200km when fully charged.

It’s full speed ahead for electric cars and buses in Hangzhou, and the locally produced Zotye 2008EV auto has recently entered the market. It's for lease, not sale, to make it financially attractive. Xu Wenwen turns the key.

Electric cars and hybrid vehicles are running on Hangzhou streets these days as the city embraces low-carbon living. Starting this year, the municipal government will invest 100 million yuan (US$14.6 million) annually to promote clean, alternative fuel vehicles in a city heavily dependent on the internal combustion engine.

The city will spend primarily on building infrastructure for electric and hybrid vehicles, researching auto components and maintaining electric vehicles.

Preferential policies to encourage use of electric cars is in the works, including setting lower electricity prices and reserving parking exclusively for new energy vehicles.

"As a tourism city, Hangzhou has higher requirements for low-carbon living and emissions mitigation than other cities," says He Xiulin, director of Car Industry Department of the Hangzhou Economic Commission.

Increased concerns over pollution caused by burning fossil fuels have fueled new interest in clean-energy cars and vehicles.

Electric cars can travel at more than 100 kilometers per hour and drive hundreds of kilometers once they are fully charged.

They are relatively more costly than other cars because batteries are costly. Because they need periodic, usually overnight charging, they are not ideal for long road trips and best for city driving.

Hangzhou is one of 13 pilot cities in China receiving central government subsidies to promote more energy-efficient and new clean energy cars and vehicles in public transport.

The city began retooling and converting its buses to electric energy last year.

Nearly 100 hybrid buses combine the internal combustion engine with electric motors to be used at low speeds and while the engine idles.

The city reports that diesel emissions have been reduced and every converted bus can save 10 percent on fuel, representing a saving of 18,000 yuan (US$2,637) per bus per year.

By 2012 the city plans to have 3,000 hybrid buses.

Private electric cars made in Hangzhou, the Zotye 2008EV, appeared in the Hangzhou market in January since the car maker received official approval for production.

Because of the relatively high cost - a battery alone costs 60,000 yuan - the cars are not on sale but for lease to make them financially attractive. A standard lease is 2,500 yuan a month, around 500 yuan lower than the cost to lease a Santana.

So far, Zoytec Auto of Zhejiang Province, BYD, Chery and other domestic makers are producing purely electric cars. The BYD F3DM and Chery's M1-EV have been licensed. Chery's QQ electric car will come onto the market in the first half of this year and the first batch of BYD e6 will be used as taxis in Shenzhen, Guangdong Province, this year.

The Zotye 2008EV autos can reach a top speed of 110kph, with a range of 200km when fully charged.

"The lease approach means the car maker bears the high cost and reduces the risk to consumers purchasing new energy cars," says Wu Jianzhong, the CEO of Zotye Auto. "The manufacturer can get fast market response and consumers have better access to low-carbon driving."

Despite high initial costs, new energy vehicles are seen to be less expensive to run and maintain in the long run.

On average, an electric car consumes 10 kilowatt hours every 100km, costing just above 5 yuan, while a gasoline-powered car consumers 50 yuan of petrol (around 8 liters) to cover the same distance.

But electric cars have a long road ahead and the internal combustion engine isn't going away any time soon. Electric vehicles still can't make long road trips without several time-consuming charges.

Two types of electric cars are available: those with battery packs that need new batteries when the old ones die, and cars with rechargeable batteries that can be plugged into electric outlets.

Considering the various recharging methods, one charging station at the present time cannot handle different batteries with different plugs and outlets.

China is establishing national standards for batteries, recharging equipment and other electric car components. The standard is expected to be issued at the end of the year.