China's National Development and Reform Commission late last year began seeking opinions regarding proposed regulations to govern manufacturers of electric vehicles, which analysts said will usher in some new faces in the arena.
Sales of cars powered by alternative energies have been rising since last year amid news that the government will encourage non-electric car producers to enter the sector.
There have been reports that Xiaomi Technology is manufacturing electric cars and that Leshi Internet Information & Technology, Beijing is planning to build electric cars with BAIC Motor.
Fu Yuwu, secretary-general of the Society of Automotive Engineers of China, told National Business Daily that the National Development and Reform Commission regulations have high barriers for businesses seeking to produce electric cars, adding that companies that have the technology and production know-how are more likely to meet the standards.
A unnamed source who has helped formulate the regulations, said that the regulations are meant partly to prevent too many companies from entering the electric car field.
Commenting on Xiaomi's foray into the sector, Fu said almost none of the information technology companies in China own intellectual property relevant to the production of electric cars.
People have also been speculating that Wanxiang Group will successfully tap into the electric car arena.
In January 2014, Wanxiang acquired US hybrid electric car producer Fisker Automotive following its acquisition of A123 Systems, a developer and manufacturer of advanced lithium-ion batteries in August 2012, which critics said paved the way for Wanxiang's entry into the field.
