Other alternatives to gasoline-powered cars that have been highly touted include hybrid vehicles (a mix of gasoline-powered engines and an electric battery), ethanol (fuel made from biological materials such as corn) and hydrogen-powered vehicles. However, these "alternatives" may be just as bad as or worse than gasoline, Vaitheeswaran said. Ethanol can require more fossil fuels to produce than what fuel is yielded and hydrogen is expensive and difficult to distribute. Electric cars are the game changer, he concluded.

New York City Mayor Michael Bloomberg evidently agrees, and has publicly praised and supported efforts to develop electric cars. He traveled to Tianjin in December 2007 to celebrate Miles electric vehicles coming off the factory line.

"Assembled here in China, the cars they are making can be marketed to drivers in both our nations, and in South America and the EU, too. The result is a marriage of U.S. and Chinese technology that is taking us forward--toward 100 percent electric-powered vehicles that drastically reduce air pollutants, cut carbon emissions, and are less expensive to operate," Bloomberg said in a speech before he took a test drive in one of the vehicles.

All this increased demand may be good news for China, where the Miles electric vehicles are manufactured. Though "Made-in-China" may in the past have a reputation for cheaply made, poor-quality goods, manufacturing standards for the electric vehicles are top-notch. The founder of Miles Electric Vehicles, Miles Rubin, made millions trading Chinese textiles and medical devices and is now using his market savvy to tackle the auto industry.

"China doesn't pay less for the raw materials; they save on labor costs," Bendell said. "The government supports labor-intensive industries."

Bendell says Major World is also considering marketing the Miles electric cars back to China for sales. China surpassed Japan last year to become the second largest vehicle market after the United States. Demand for cars is growing in the double-digits annually and air pollution due to auto emissions has become a serious problem in many cities.

"China is going ‘green' too," Bendell said.

As for China's reputation for poorly made goods, Orest Mirchuk, head of fleet and government sales for Major World, said Japan-made products followed a similar trend in the 1980s. Though Japan initially had a reputation for cheaply made electronics, today Japanese manufacturers have a reputation for high-quality, affordable products.

"Cost makes a difference," Mirchuk said. "People are getting beyond misconceptions and looking at the integrity of the product, not just where it is built."

(Reporting from New York)

Who Saved The Electric Car?

Entrepreneur Miles Rubin launched Miles Electric Vehicles in 2004, with a mission to develop safe, affordable, all-electric vehicles that produce zero emissions. He chose to build his cars in Tianjin, China, according to the company website, because of the area's expertise in battery manufacturing. Since then, the company has produced two models for the market: a hatchback currently available and a truck model that will hit dealerships this fall. A highway-ready sedan model is in development.

Electric cars are not the first action Rubin has taken on environmental issues. In the 1970s, he helped to create Energy Action, an advocacy group dedicated to American energy independence, according to the website. Rubin is a former lawyer and head of several companies, including Polo/Ralph Lauren Jeans.

The idea for producing electric cars came to Rubin after visiting a Chinese factory that produced lithium-ion batteries. The batteries, used for laptops and cell phones, are far more powerful than nickel-plated batteries used in previous electric car models. However, it will still be years before the batteries are considered safe enough to use in cars, as they have a tendency to overheat and even catch fire.