Chinese authorities are experimenting with a number of measures that could boost fuel efficiency and tighten emissions levels in the country.

They are encouraging firms to manufacture small cars, have imposed taxes on inefficient models and are experimenting with hydrogen-powered and hybrid cars, according to Reuters.

Platinum is used in many automotive fuel cells, as well as utilised as a catalyst in diesel engines which are much more fuel efficient than petrol equivalents.

According to Reuters, policy-makers in the country that is the second biggest consumer of oil in the world are making real attempts to improve efficiency and cut emissions.

"The government recognises that energy resources going forward are a problem. This is part of a far broader and more pervasive policy of addressing fuel and energy efficiency," Clive Saunderson, an automotive partner at Ernst & Young in Beijing, told Reuters.
   
Mr Saunderson explained that this had to be balanced with the fact that automotive construction is booming in China and has become an important industry.

"Beijing is keen to improve fuel efficiency, but it's also trying to work out how it actually does this without causing harm to what is a very important nascent industry in China," he added.

Low-emission cars accounted for five out of the ten best-selling models so far in 2006, according to China's official news agency.

Ÿ Adfero Ltd