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China's largest clean diesel motor plant has gone into production in Inner Mongolia. It marks a giant step forward, for China's auto parts industry.

The new plant is a subsidiary of Haw Tai Automobile. It will manufacture diesel motors, complying with euro five emission standards. It's China's first clean diesel engine for autos. And could reduce energy consumption by a quarter, compared with gasoline engines of the same size.

Xu Hengwu, Director of Haw Tai Motor Plant, said, "Considering the national energy strategy and the urge to cut carbon dioxide emissions, diesel motor markets will experience rapid growth in the near future."

Diesel motors are relatively environmentally-friendly.

Cars powered by diesel engines make up over 50-percent of market share in Europe and the figure is increasing in North America, Japan and South Korea. However, China has lagged behind with a market share close to zero.

This new plant, with a production capacity of 300-thousand for the first phase, is making a breakthrough.

Zhao Jingguang, Dep. Party Secretary of Foton Motor Co., said, "It is a trend that traditional engines will develop into low-emission and environmentally-friendly motors. At present, new energy vehicles only account for a small percentage in China."

Many auto makers are eyeing clean diesel motor markets.

Bus maker Foton Motor, will install its first euro five engine this year.