With Chrysler and GM out of the running, China is vying to become the world leader in hybrid and electric vehicles.

The New York Times reports that China is aiming for a production capacity of 500,000 hybrid or all-electric vehicles a year by 2011 – outnumbering the amount of eco-friendly vehicles the U.S. and Japan will be able to put on the roads in the same time frame.

China, who gets three-fourths of its electricity from coal, is offering subsidies for taxi companies and municipalities that switch to electric or hybrid vehicles. The government has also ordered construction of electric-vehicle charging stations for Beijing, Shanghai and Tianjin, the Times reported.