Officials and executives in the central Chinese city of Wuhan said they intend to build a major electric-vehicle production base, with planned investment of three billion yuan, or about $443 million, the state-run Xinhua news agency reported, in the latest sign of China's ambitions in the new-vehicle sector.
The plan was signed by the city's Hannan district government and Wuhan-based Grand China Electric Vehicles Co., which has developed its own electric-vehicle production technology, the report said.
The production base aims to produce 3,000 battery-powered vehicles annually, as well as 3,000 packages of core auto parts, with eventual annual sales of $1.5 billion, the report said. The company plans to finish building the production facilities within two years, Xinhua said.
The company and the city government couldn't be reached late Sunday for comment.
The announcement comes as China pledges to boost the development of the new-energy vehicle industry, among several innovative industries, as part of the government's goal to further expand its auto industry and improve energy efficiency.
Wuhan has been among the local governments in China most actively promoting electric vehicles. Earlier this year Wuhan signed a separate agreement with Japan's Nissan Motor Co. to jointly study how to promote use of electric cars in Wuhan. As part of that deal, Nissan agreed to provide the city with 25 Nissan Leaf all-electric cars starting next year, and the city government pledged to build a number of battery charging stations in Wuhan. The two parties are aiming, through this effort, to study how everyday people would use an electric car and figure out what kind of charge-station and other infrastructure is necessary.
