$25k Chinese electric car for 2011

China is gearing up to produce the most affordable electric car to go on sale in Australia - and it could be in dealerships as early as next year.

The governing director of Ateco Automotive, Australia's largest independent vehicle importer, says he plans to have an electric car on sale by 2011.

"We want to have an electric car in 2011," said Ateco's Neville Crichton. "We're very confident we will. We see there's a niche in the market."

Already Ateco is selling Great Wall vehicles in Australia and is just months away from beginning distribution of Chery cars, the fourth biggest automotive brand on sale in China.

Crichton won't say whether the electric car will come from one of the company's existing Chinese brands or whether he will begin importing a third brand from the country that is now buying more cars than any other.

"I'm not commenting," he said, when quizzed on what brand would supply the electric car. "There are several suppliers of electric cars."

He said it "maybe" could come from Chery or Great Wall, although the former seems the most likely.

Fast growing brand Chery - which only produced its first car in 1999 - is already well advanced in the development of an electric car and plans to have a hybrid on sale overseas by the end of this year.

However, Crichton did not rule out importing another brand, and that no matter which brand the electric car comes from it will be competitively priced among regular, petrol-engined cars.

"I think they've got to be ... probably in the mid-20s to do volume," he said. "Why would you pay 50 or 60 [thousand dollars]?"

He said if the EV could be sold for around $25,000 it could be a serious competitor against other electric vehicles.

Mitsubishi recently began selling its i-MiEV, the first mass produced electric car to go on sale in Australia. But with a price tag of $70,000 for what is similar to a $20,000 petrol-powered car the four-door Mitsubishi will only sell in very small numbers and predominantly to fleets and governments looking to sprout a green image.

Nissan has also committed to bringing an electric car to Australia by 2012, although the Leaf is tipped to cost upwards of $30,000.

Other brands such as Toyota and Holden are planning to sell plug-in hybrid vehicles, which run on electricity most of the time but have a regular engine as a back-up to extend the driving range.