Ten state-owned Chinese auto manufacturers have formed an alliance to develop electric vehicles and key parts, according to Dong Yang, chief secretary of the China Association of Automobile Manufacturers (CAAM).

The biggest obstacle for EV development lies in their commercialization, Dong said on the sidelines of an auto conference organized by China Europe International Business School last week in Shanghai.

Dong said he disagrees with the widely held view that China can become a world leader in EV development. "What we can do is to ensure we do not lag behind," he said.

Dong declined to provide further details on the alliance.

He said the ten companies include nine passenger vehicle makers and one heavy duty truck manufacturer: Shanghai Automotive Industry Corp., China FAW Group Corp., Dongfeng Motor Corp., Changhan Automobile Co., Guangzhou Automobile Group Corp., Beijing Automotive Holding Corp., Shenyang Brilliance Jinbei Automotive Co., Chery Automobile Co., China National Heavy Duty Truck Group Co.