Why China May Save The Electric Car

William Pentland, 10.27.08, 3:50 PM ET

The news wasn't all bad for General Motors on Tuesday.

Amid talk of bankruptcy and a forced merger with failing Chrysler, GM (nyse: GM - news - people ) introduced a new model of its Chevrolet Equinox in Beijing that runs on hydrogen, making the beleaguered automaker the most recent company to take a big bet on the budding electric vehicle (EV) market in China.

GM sees China as being among the first markets and production sites for alternative propulsion systems and will continue working to advance its strategy of "in China, with China, for China" to help the country develop diverse automotive energy solutions and commercialize such energy solutions, David S. Chen, vice president of GM China Group, said last week.

They're not alone. Recession or no recession, Asia's emerging economies will be buying a massive number of automobiles in coming decades. Odds are, the lion's share of them will run at least partially on electricity. At least that's what investors and manufacturers, from GM to Warren Buffett, think.

more on this story