China's Chery Automobile Company has announced that it will be displaying its own hybrid vehicle at next week's Auto China 2006 event in Beijing. Previous reports have suggested that Chery was working closely with UK engineering firm Ricardo on a hybrid drivetrain, but local sources claim that the car was developed completely in-house.

Forbes is now reporting that a production version could feature both gasoline and diesel variants, and is aimed at being a mass volume vehicle. However, no release date or pricing information has been announced but we expect more details following the launch.

Major rival Geely, is also said to be working on an in-house vehicle with a hybrid drivetrain, which the company expects to be rolling off the production line early next year. General Motors has already announced that it plans to build its own range of hybrids in China with its partner Shanghai Auto, so it will be interesting to see who comes out on top.