Volkswagen is the latest car manufacturer to increase its efforts to produce greener motors.

In cooperation with Shanghai Automotive Industry Corporation, the popular German carmaker has announced its intention to launch its first gasoline-electric hybrid minivan in China.

The companies aim to produce 500 hybrid Touran cars for use as people carriers in the Beijing 2008 Olympics.

This is the first time VW has publicly declared that it will be selling a hybrid vehicle. It is currently joining forces with Tongji University in Shanghai to develop the models.

As a country increasingly receptive to new environmentally friendly vehicles, China could prove to be an attractive proposition for more and more 'green' automotive initiatives.


The Chinese government is eager to encourage energy conservation and has been offering financial incentives to research institutions and car manufacturers who chose to develop hybrid-propulsion vehicles and fuel cell vehicles.

Hybrid vehicles are particularly called for in China, as the country's diesel is more polluting than its European counterparts and frequently unreliable.

VW is also working on hybrid models for the European market, although it has not yet revealed if and when they will go on sale.

Ÿ Adfero Ltd