BAIC may acquire Zoyte Auto next: source

Shanghai August 26 (Gasgoo.com) Beijing Automotive Industry Holdings Co (BAIC) is likely to take over the small Chinese SUV-maker, Zoyte Auto. Both sides have now entered into final negotiations, Beijing Daily reported Thursday.

BAIC plans to build five production bases in eastern, southern, western, northern and central parts of China, the company revealed during the signing ceremony to finalize buying Baolong Auto.

The company has already set up four manufacturing bases in Chongqing, Guangzhou, Zhuzhou, and Beijing. Its ultimate goal is to make its presence in eastern part of the county.

News regarding BAIC's acquisition of Zoyte Auto has been uncovered as early as May of this year and Zoyte Auto later admitted to negations with BAIC as well, reports the Bejing Daily.

Data show that Zoyte Auto belongs to Zotye Holding Group which primarily focuses on research and manufacturing cars, engines, transmission cases and other spare parts.

Founded in 2003, Zotye Auto has started developing all-electric vehicles since 2006, and rolled out its first mass-produced electric vehicle, the Zotye 2008 EV, in Hangzhou.

In 2007, the company restructured Jiangnan Alto, which resulted in the company achieving annual sales of about 40,000 cars, successfully entering into the sedan market.

Zoyte Auto presently produces sedans, light buses, light trucks, all-electric and other models. BAIC will be able to expand its business to the eastern part if it succeeds in taking over the Zhejiang-based carmaker as planned.