General Motors is making an an electric version of their Chevrolet New Sail, and should be rolling out a prototype by the end of the year.
If they succeed, they will be the first foreign company to produce electric vehicles in the Chinese auto market.
The subcompact Chevy Sail was developed by GM's joint venture with Shanghai Automotive Industry Corp, GM-Shanghai.
The partnership is important because China grants subsides to electric and hybrid vehicle buyers — but only for domestic brands.
So while the Nissan Leaf and the Chevy Volt launch, they will face a serious uphill battle when trying to compete with the subsidized Chinese-made models.
The electric New Sail would be eligible for the subsidies, some of which could account for 30% of the vehicle's cost.
GM-Shanghai is expecting a hybrid Buick New Regal to launch next year as well.
Details are scarce at this point, but we'll be following up as they emerge.
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