Tianneng storing hope in batteries

"We have been developing the new-energy vehicle sector for a long time, but we don't even have a clear definition of a new-energy vehicle, not to mention the ability to reach the target by 2015," Zhang said. "The reason for that is automakers are relying too much on government subsidies."

Zhang said the government should launch regulations on the technical standards of the industry to allow more private carmakers to participate in the electric vehicle market and "grow in the sunlight".

Each major automaker is likely to have an electric vehicle in its portfolio by the end of the decade with batteries at the core of those vehicles playing an important role for advancement, analysts said.

The soaring demand fueled by China's resolution to tackle air problems has also drawn other global rivals to invest in a market where the payback may take time.

South Korea's Samsung SDI said in January that it will form a joint venture in China to spend $600 million over the next five years on building an electric-car battery plant in Xi'an, Shaanxi province, which is expected to be the country's largest battery production base and home to other electric-car battery-related businesses.

The factory, which will be put into production next year, could be used to serve its current customer BMW as well as carmakers such as Volkswagen AG that are rushing into electric cars in China, analysts said.

Rival LG Chem, which currently supplies electric-car batteries for General Motors Co's Volt and Renault cars, is also planning to set up an electric vehicle battery plant in China, hoping to double the number of its clients to 20 in the near future, according to Reuters.

Although multinational companies have more advanced technology, the Chinese battery companies have a competitive edge in winning them over with their prices, Zhang said.

"What deters the development of electric vehicles is the expensive cost of advanced battery technologies. With low production costs, Chinese companies have more advantages in pricing," he said. "Besides, we are also better at building connections and networks for service."