Chen made his remarks in Beijing at the annual meeting of the National People's Congress, China's legislature, SAIC Motor said in a statement.

Compared with gasoline-powered vehicles, diesels reduce energy consumption by 30 percent and carbon emission by 25 percent, Chen pointed out.

The government should require each automaker to allot a fixed percentage of its vehicle production to diesels, he added.

The government also should introduce tax incentives and subsidies, and ensure that adequate supplies of low-sulfur diesel fuel are available, he said.

In China, diesel fuel is used mainly to power commercial trucks and farm machinery.

Due to shortages of high-quality fuel and a lack of government incentives, the only diesel-powered light vehicles in China are some low-end MPVs, SUVs and taxi cabs.