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China to be Asia's top EV market by 2015, consultant predicts

China will be the top market in Asia for electric vehicles by 2015, predicts Pike Research, a consulting firm based in Boulder, Colo.

From 2010 through 2015, sales of EVs in China will grow 40 percent a year, the company's study asserts. Much of that growth will come from sales of pure EVs, the report adds. Pure EVs do not have a combustion engine and must be plugged in to recharge.

By contrast, Japan's more developed EV market will grow about 10 percent annually over that period, according to the Pike survey.

Approximately 55 companies in China are developing EVs, according to Pike. "The country will become one of the biggest consumer markets for EVs, and global industry players want to enter this market to tap the related opportunities," concluded company analyst Andy Bae.

Indeed, China's central government has encouraged foreign automakers to share EV technology with their Chinese partners. General Motors, Daimler AG, Suzuki Motor Corp., Volkswagen AG and Nissan Motor Co. all have announced plans to build EVs in China.

But automakers have sold virtually no EVs to retail customers in China despite generous government sales incentives. Further, China's cities have yet to build extensive networks of charging stations -- a necessary precondition for a healthy EV industry.