Entitled "Challenge Bibendum", the competition will be held at the Shanghai International Circuit, the location of September's China Formula One Grand Prix. The annual event will feature vehicles powered by the world's latest environmentally-friendly auto technologies.

All the participating vehicles from major manufacturers in Asia, Europe and North America will be evaluated on factors like energy efficiency, emissions, noise, acceleration and handling.

A number of proto-type and batch-production vehicles, all equipped with clean-energy sources like fuel cells, hybrid fuel, biofuel, diesel, hydrogen and natural gas, will participate.

And a few sideline activities like an international symposium, an education centre and an international policy review meeting will be held.

"The timing of the event in China is perfect as it is the world's most dynamic auto market," said Eric Jugier, chairman of China operations of French tiremaker Michelin, which initiated the event in 1998.

"With the Chinese Government implementing strategies for reducing fuel consumption and emissions, China can serve as a reference for other countries in terms of developing clean-energy auto technologies," he noted.

It is the first time the event has been held in Asia.

It has been held in France, Germany and the United States, and usually draws big-name automakers like Ford, General Motors, Audi, BMW, Volkswagen, Daimler-Chrysler.

Organizers of the October event expect to attract over 100 vehicles, including passenger cars, trucks, buses and two-wheel vehicles. China's major automakers like First Automotive Works (FAW), Dongfeng, Shanghai Automotive Industry Corp (SAIC) as well as leading domestic research institutes and universities will also be present.

China has invested 2.4 billion yuan (US$290 million) towards a project to develop electric vehicles, and as a key part of that project's anticipated achievements, the country's fuel cell buses and cars will hopefully be put into pilot operation during the 2008 Beijing Olympics Games.