State-owned OEM Changan Automobile group has begun production of China's first hybrid car, according to Xinhua, the Beijing government-controlled news agency.
Changan, which unveiled the Jiexun Hybrid as a prototype with a 2.0-litre gasoline engine at the Shanghai motor show in April 2007, said at the time that the vehicle, also known as the CV11, would be priced between the equivalent of US$12,000 and US$19,000.
Production of the conventional CV11 started at the OEM's Yudong plant in March 2007, having debuted at the 2003 Shanghai motor show as the Changan MPV concept. The seven-seater minivan was designed by Italy's IDEA.
While the OEM is yet to provide information on the new production version's powertrain, the conventional CV11 is powered by a 136hp (102kW) 2.0-litre four-cylinder engine developed jointly by Changan and powertrain design and development firm FEV. The CV11 is 4445mm long, 1768mm wide and 1640mm high.
Sales of the Toyota Prius, until now the main hybrid model assembled and sold in China, have been slow since it was introduced two years ago. According to a report in Japan's Nikkei daily, only 299 units of the Prius were sold in the first ten months of 2007. This is due mostly to its steep Yuan 300,000 (US$40,652) price tag, though gasoline is also extremely cheap in China compared to most countries.
Unlike other markets, neither provincial governments nor the authorities in Beijing offer incentives to consumers for hybrid vehicles.
Changan has announced only indicative pricing for the Jiexun Hybrid, stating that a ballpark figure of Yuan 150,000 can be expected, roughly Yuan 20,000 more than the gasoline-only version.
Changan is yet to release images of the production version of this former concept, nor has it stated a date for the start of sales, claiming only that ten cars will be demonstrated at the Olympic Games in summer 2008.