U.S car maker General Motors, will begin producing a hybrid car in China from next year, in time for the Beijing Olympics in August.

One of GM's local Chinese joint ventures, Shanghai GM, will team with SAIC Motor Corp to launch the new model.

So far, there has been little demand for hybrids in China, but GM will build its environmentally friendly credentials as Chinese consumers look for better mileage amid record-high energy prices.

Toyota Motor Corp is currently the only carmaker that builds a hybrid car in China. It sold just 2,000 of the Prius hybrid last year.