SAIC group to spend $300 mln on green cars

SAIC Motor Corp, China's biggest automaker, said on Tuesday it plans to set up a venture with its state-owned parent that will invest 2 billion yuan ($293 million) to develop clean-energy cars.

The SAIC group will hold a 90 percent stake in the venture, which will focus on the development of hybrid and electric vehicles, while its listed unit will hold the remainder.

Domestic and foreign automakers are pouring increasing resources into the development of "green" cars as concerns mount over the environment and the threat of global warming, which is linked to carbon dioxide emissions.

In January, SAIC's car venture with General Motors rolled out its first locally produced hybrid car in China and said it planned to introduce fuel cell-powered vehicles into the world's second-largest auto market after 2010.

Rechargeable battery maker BYD Co plans to launch its first all-electric car in China in the second half of 2009, Henry Li, general manager of BYD Auto's export trade division, told Reuters last month.