New govt sweep clears industry of 'zombies'

But things are changing for the better. Scores of companies have filed applications to produce new-energy vehicles and evaluations are underway, said the MIIT. The Chinese government has been encouraging the development of new-energy vehicles.

Although companies including Wanxiang, one of China's major spare parts producers, have reportedly obtained its qualifications, many more newcomers are calling for an easier entry into the sector, which now demands among other things an investment of at least 2 billion yuan ($306.2 million), an independent research and development center as well as sales and after-sales networks.

"If we can meet the nation's criteria about research and development and there are brands that will produce cars for us, I think the government should grant us qualifications," said William Li, founder of NEXTEV.

An industrial cleanup

Thirteen producers of passenger cars had their production qualifications revoked, according to the Ministry of Industry and Information Technology on its website on Feb 29.

Shijiazhuang Zhongbo Automobile Co Ltd

Gaobeidian Zhongke Huabei Automobile Co Ltd

Qinhuangdao Jincheng Automobile Manufacture Co Ltd

Shijiazhuang Shuanghuan Automobile Co Ltd

Jiangsu Zilang Automobile Group Co Ltd

Anhui Huayang Automobile Manufacture Co Ltd

Anhui JAC Anchi Automobile Co Ltd

Anhui Zongshen Tongbao Automobile Manufacture Co Ltd

Jiangxi JMC Special Vehicle Co Ltd

Zhuhai Maoda Automobile Industry Co Ltd

Dongguan Zhongqi Hongyuan Automobile Co Ltd

Qingyuan Yuejiang Micro Car Co Ltd

Qingling Automobile Group Co Ltd