Aug. 20 – Sixteen of China’s largest state-owned enterprises are collaborating on a green technology project that aims to put more than one million electric and hybrid cars on China’s roads over the next few years at a cost of US$14.7 billion, according to media reports.

The State-owned Assets Supervision and Administration Commission (SASAC) initiated the alliance, which was formed on Wednesday, and provided it with US$186 million in startup capital.

Some of the country’s smaller, private auto-makers have voiced concern that such an association may hamper competition and that is wasn’t clear who would own the intellectual property rights.

“Central SOEs have an overall advantage in developing the electric vehicle industry. We will strive to support central SOEs to accelerate the development of the electric vehicle industry,” Li Rongrong, chairman of the SASAC, told the government newspaper People’s Daily.

The alliance also aims to speed up research and development in vehicles, fuel cells, and charging systems, as well as setting some unified standards, according to Li.

The 16 state-owned enterprises included in the alliance are: Air China Industry and Technology, Aviation Industry Corp. of China, China Aviation Technology Import-Export Corp., China FAW Group, China National Offshore Oil Corp., China National Petroleum Corp., China Petroleum and Chemical Corp., China Poly Group, China Potevio, China South Industries Group Corp., China South Locomotive and Rolling Stock Corp., China Southern Power Grid Company, Dongfang Electric, Dongfeng Motor Corp., General Research Institute for Nonferrous Metals, and State Grid.

China’s Ministry of Finance initiated an incentive policy earlier this year in Changchun, Hangzhou, Hefei, Shanghai, and Shenzhen providing a RMB60,000 subsidy for the purchase of an electric vehicle, and a RMB50,000 for hybrid vehicles.