Gasgoo.com (Shanghai October 28) - Although some in the market believe that hybrids are nothing more than a needed transition between traditional fuel-powered vehicles and pure electrics, the market for hybrid vehicles is starting to mature quickly. China has been seen as the proving ground for these types of vehicles, with GM, Toyota, SAIC and other manufacturers investing great deals in developing the market.

Future plans for the new energy vehicle market have already been sent up to China's State Council, with hopes that an official program will be approved by the end of the year, Zhang Xiangmu, Director General of the Ministry of Industry and Information Technology's Department of Equipment Manufacturing Industries, revealed. According to Mr. Zhang, new plans will be different this time, as they will not only revolve around pure electric vehicles, but also emphasize the importance of hybrid technology.

Toyota, being one of the few manufacturers to mass manufacture and sell new energy vehicles, is seen as a pioneer in the global hybrid industry. As of this August, Toyota's total hybrid sales have exceeded 3.3 million. When asked about this market, CEO Akio Toyoda said that hybrid vehicles formed a core technology in the realm of new energy automobiles. Takeshi Uchiyamada, executive vice president and head of technology for Toyota, believes that, by 2020, pure electric vehicles will account for no more than five percent of the global automobile market, with the remaining 95 percent divided between hybrids and traditional fuel-powered vehicles. "In different countries and regions, the amount of market share divided by hybrid and fuel-powered vehicles will vary," Mr. Uchiyamada said. "In China and some other developed countries, [the ratio between] hybrid vehicles and fuel-powered vehicles may be three to seven," he stated, adding that other countries such as India may not be able to achieve such a high ratio.

Being the first manufacturer to test hybrids in the Chinese market, Toyota has suffered a lot of setbacks in the past. Prices of its Prius (pictured) were around 100,000 yuan higher than its competitors, due to the high ratio (around 90%) of required auto parts built overseas. Sales plummeted, leaving FAW Toyota with no choice but to halt production. However, Mr. Uchiyamada has not lost his faith in the market. "Hybrid technology is already mature enough," he said. "The key problem [about the Prius] was that the ratio of domestic production was far too low." He believes that after domestic production begins, costs for the vehicle may drop as much as 50 percent.