Amid rising oil prices, alternative-fuel autos are being driven into the spotlight as they have lower emission and fuel costs. However, the new vehicles still face a tough fight against conventional models with high development costs and unresolved technical issues.

The hybrid engine system, which switches between gasoline and electric, is already being put into commercial operation while fuel-cell autos are seen as the ultimate solution to reduce dependence on gasoline.

Chinese universities and automakers are gearing up to ride a global trend to develop alternative-fuel vehicles. Made-in-China autos are already on the way.

The hybrid engine bus researched by FAW of China

Fuel-cell, another type of electric auto, is seen as an ideal method to develop a clean auto sector as the only emission is water. The power in a fuel-cell comes from the reaction of hydrogen and oxygen. It also needs hydrogen charging similar to gas filling.

Tsinghua University developed two fuel-cell buses which can drive at 70 km per hour for 200 kilometers. The hydrogen-powered buses will debut on Beijing's roads next October.

Fuel-cell bus developed by Tsinghua University

Although the prospects seem rosy, there are also challenges. Besides, technology difficulties, soaring research and development costs may be the biggest challenge to accelerate the development of fuel-cell vehicles.