Bloomberg citing Mr Alan Mulally CEO of Ford Motor Co as saying that may make electric cars with its partner in China as the auto industry moves toward producing more fuel-efficient vehicles.

He said that “As we move to more electrification, you’re going to see more hybrids, plug-in hybrids and all-electric cars.”

Mr Mulally in China for the groundbreaking of an engine transmission plant at Ford venture with Changan Automobile Group didn’t say when the Dearborn, Michigan-based company may start making the electric cars. Rivals Daimler AG and General Motors Co have announced plans to add such vehicles in China as the country and the world largest polluter and seek to reduce emissions.

He said that the government aims to have 1 million electric-powered vehicles on the road by 2015. A rollout of electric vehicles depends largely on infrastructure and advances in battery technology.

He added that Ford will also consider introducing its Lincoln luxury brand in China to tap the growing high end sedan market. The carmaker now sells models including its Mondeo sedan and Focus small car in the country.

He also said “We have a great luxury brand in Lincoln which we have recommitted ourselves to. There’s going to be tremendous pull from China to have access to these great vehicles.”

According to JD Power & Associates while GM controlled 10% Ford is spending USD 1.6 billion to build four factories in China where it plans to triple its line up by offering 15 models by mid-decade. The carmaker dependent on the US and Europe for most sales and profits had 2.7% of the passenger vehicle market in China through June.

Analysts at JD Power forecast China demand for luxury cars will grow about 35% this year. This compares with a 5% increase for overall auto sales as predicted by the China Association of Automobile Manufacturers. Ford also expects the market to grow at about 5% near the low end of its 5 to 10% forecast.

(Sourced from Bloomberg)