Technology is actually a large part of the problem. Contrary to what some will make you believe, it's not easy to develop alternative fuel solutions for anything with wheels. It's certainly possible, and even viable, but since the incentive is, and is likely to be in the near future, largely a financial one (as in "gain"), the industry isn't really bothering to do more than absolutely necessary. It's hugely expensive to develop a single new engine for an automotive so they avoid this for as long as possible.
Unfortunately, the planet doesn't have the time to wait.
What the state should do--any state--in the interest of saving their future economies as well as large portions of the third world population, is to force the industry to act. This is happening but not nearly as fast as it should be. There are always exceptions, there are carbon dioxide quotas routinely exceeded, and there are always excuses.
If the Lada or the Skoda is green enough while being state-made and generally boring, I'd readily accept the trade-off. It's no fun driving a cool car when the planet is going to hell.
Semicolon, where are you? We miss you!