Chinese SUV maker Zotye raises $105 mln for EV project

Shanghai, August 5 (Gasgoo.com) Zotye Auto, a Chinese maker of sport utility vehicles (SUV), is raising about 720 million yuan ($105 million) by selling a unspecified percent of stakes to a group of private Chinese companies, aiming for supporting development of its own brand new energy vehicles.

Zotye signed strategic cooperation contracts on Tuesday with a group of 11 privated investors, led by Shenzhen-based JF Asset Management Company, Zhejiang Haiyue Co and Xinghe (Group) Corp at Hangzhou, the capital city of Zhejiang province.

Zhengjiang provincial government leaders, as well as the municipal government representives of Yongkang city, where Zotye is located, attend the signing ceremony.

Wu Jianzhong, president of Zotye Auto, said "with the support of private investors, Zotye is extremely confident in exploring ways to develop more cost efficient powerhouse for electric vehicles.”

Wu said that Zotye plan to mass produce its pure electric vehicles by the end of this year.

Last month Zotye rolled out a pure electric four-seater with a range of 250 miles and a top speed of 75mph. It has lithium-ion batteries that can be recharged in 6-8 hours from a conventional socket, or in two hours from a high-power recharging point.

Zotye plans to make and sell 500,000 vehicles by 2012, aiming to double that capacity by 2017, according to its Web site. It also has plans to bring its electric vehicle to Europe and the US within the next couple of years.

Zotye 2008 EV