China’s Global Times newspaper reports that the China government is considering requiring new passenger car vehicles (PCVs) to be equipped with belt-starter-generator (BSG) systems for fuel efficiency, according to General Manager of Chery New Energy Company, Yuan Tao. Such microhybrid systems could save about 5% on fuel.

An industry insider from Dongfeng motor confirmed the statement, and said implementation should happen by 2012…Unlike the electric vehicle technology, the BSG is just an innovation of traditional gas-diesel engine and can boost fuel efficiency. Its cost is also relatively low. According to Dongfeng Motor, under mass production, it only costs 1,000 yuan ($147.5) per car to be equipped with the BSG system.

…Domestic fuel consumption in 2008 was 540 million tons of gasoline and 520 million tons of diesel. If all the vehicles had been equipped with the BSG system, the annual fuel consumption would have decreased by five million tons…Statistic shows that the sales volume of domestic new energy cars in 2009 are 9,800 units, only accounting for one thousandth of the sales of domestic PCVs.