With concerns over future supplies of fossil fuels and an increasing awareness of environmental protection, more attention is being placed on new energy technology worldwide.

From left: Daimler Board Member Dr Thomas Weber and DNEA CEO Ulrich Walker meet with BYD Executive Vice-President Lian Yubo and BYD Chairman Wang Chuanfu, after the final approval of the new joint venture's name - Shenzhen BYD Daimler New Technology Co Ltd (BDNT). [China Daily]

This is particularly true in China, with the government identifying new energy as one of the country's seven "strategic emerging industries" in its 12th Five-Year Plan (2011-2015), supporting environmental sustainability, with a specific focus on new energy vehicles, particularly electric and hybrid vehicles.

One automaker long dedicated to sustainable mobility is Daimler, a company at the forefront of developing innovative technologies to realize its goal of making emission-free mobility a reality.

With a long-term commitment to China, the German automaker entered into a joint venture partnership in May last year with BYD, the Shenzhen-based carmaker and developer of lithium-ion batteries for electric vehicles (EVs), to develop an EV specifically for the Chinese market.

The 50/50 joint venture -Shenzhen BYD Daimler New Technology Co Ltd - was granted its business license by the Chinese government in February this year, although the joint Daimler/BYD team had already been working on the vehicle's concept.

With the exterior design already determined, but still under wraps, the joint venture will soon start prototyping. The first car is expected to roll off the production line in 2013.

This marks an important milestone for Ulrich Walker, chairman and CEO of Daimler Northeast Asia Limited, a strong advocate of emission-free mobility, who initiated discussions with BYD.

Recently commenting on the partnership, Walker said, "With Daimler's 125-year heritage as the inventor of the automobile, we have in-depth automotive knowledge, particularly with regards to design and safety technology, so it made sense to marry our know-how here in China with the knowledge that BYD brings in terms of battery technology, e-components and the e-motor."

The vehicle will be a completely new model, heralding a new generation of compact to mid-sized EVs, and will be marketed under a new brand name, yet to be revealed.

With the central government's focus on new energy vehicles, local governments are following suit, offering subsidies to build relevant supporting infrastructures, as well as to help customers purchase the EVs. The Beijing municipal government, for instance, will offer individuals a subsidy of up to 60,000 yuan.

Through such strong government support, EVs are likely to increasingly attract the attention of Chinese consumers, so Shenzhen BYD Daimler New Technology Co Ltd is in a good position to take full advantage of future demand.