Chang'an Motor rolls out new petrol-electric vehicles and it will go on sale in this year. Chang'an is going to spend 300 million yuan ($40.76 million) by 2012 to introduce more hybrid models and carry out research.

Hybrid vehicles have tremendous growth potential in China, the world's second-biggest oil consumer, as they are more fuel efficient and environmentally friendly than conventional vehicles. However, hybrid sales in China remain negligible because they are much more expensive. Chang'an said it would also boost research in vehicles powered by other new energy resources, including hydrogen, pure electricity and biofuels. It plans to invest a total of 4 billion yuan in new product development within the next three years.

Chang'an aims to sell 2 million vehicles a year by 2010, with three-fifths from its own nameplates.