Tencent-backed startup to build EVs in Shangrao

A startup backed by Chinese technology giant Tencent Holdings signed an agreement with local government officials to produce electric vehicles in the east China city of Shangrao.

The company, Zhejiang I-car Internet and Intelligent Electric Vehicle Co., was established earlier this year. Backers include Tencent, China Harmony Auto Holding and Foxconn Technology Group.

China Harmony is a dealership chain specializing in luxury marques, while Foxconn is a major producer of consumer electronics.

The startup plans to build a 13.3 billion yuan ($2.0 billion) assembly plant, according to the provincial government of Jiangxi.

The factory will produce up to 300,000 electric crossovers, SUVs and multi-purpose vehicles annually after reaching full production, the Jiangxi government said. The plant also will have a production line to assemble battery packs for EVs.

A schedule for the plant's construction has not been released.

Tencent, Harmony Auto and Foxconn have also formed a partnership to establish another EV startup, China Future Mobility Corp., to develop connected and automated electric cars. 

Future Mobility is expected to unveil its first model next year and put it on sale in 2019, according to China Harmony Auto's financial report released in the summer.

Tencent, headquartered in the south China city of Shenzhen, is one of several major Chinese Internet companies that have ventured into the market for EVs.

Chinese Internet company LeEco has started building EVs at Faraday Future in Nevada. Next EV, a startup backed by the founders of automotive websites Bitauto and autohome and the e-commerce site JD.com, has signed up state-owned automaker Jianghuai Automobile Co. to assemble EVs.