General Motors Corp yesterday began selling its hybrid sedan in China as it focuses on more energy efficient models in a battle with its major rival Toyota Motor Corp.

The Buick LaCrosse ECO-hybrid is made by GM's flagship venture Shanghai General Motors Corp and is expected to be the first mass-produced hybrid sedan in China's mid to high-class segment. The car is priced at 269,900 yuan (US$39,691) in China.

Shanghai GM said the model, powered by a 2.4-liter engine and a battery, could reduce fuel consumption by 15 percent to 8.3 liters per 100 kilometers. It can also lower emissions by at least 15 percent.

The company introduced the Buick LaCrosse hybrid at the beginning of the year as part of its "Drive to Green Strategy" to roll out more eco-friendly vehicles in China.

"The mid to high-class segment is more suitable for hybrid models to penetrate," said Ding Lei, general manager of Shanghai GM. "It helps improve fuel consumption which is good for everyone."

The move came after General Motors, the world's largest car maker, announced plans to gradually shift its core business to electric-powered vehicles in an attempt to meet market demand and regain its competitiveness.

Record fuel prices and a growing awareness of environmental protection have spurred market demand for fuel efficient models. Car makers including General Motors and Toyota have been investing heavily in greener cars to help boost sales.

Toyota started making its Prius in China in 2006. However, the sale of just 1,500 units was far less than expected with the higher price and expensive maintenance being two major barriers for the green car's sales.

Shanghai GM said the Buick LaCrosse hybrid is about 20,000 yuan more expensive than the normal version but offers free maintenance on hybrid spare parts within four years or up to 120,000 kilometers driving.

(Shanghai Daily July 16, 2008)