Lifan Group to invest 1 bln yuan in minibus project

Shanghai, July 28 (Gasgoo.com) China's motorcycle and automotive maker, Lifan Group recently announced the company has launched the minibus project officially with a total investment of 1 billion yuan ($147 million), according to autosina.com. The project is expected to start production in September 2009.

The new minibus facility will be located at Bishan County of Chongqing, covering about 6,000 square meters with a total investment of 1 billion yuan. The plant will achieve an annual production capacity of 150,000 to 200,000 units after its construction is finished. More than that, the 1.8 billion yuan engine factory by Lifan is also started and is expected to be completed next year.

A bird's-eye plan of Lifan's minibus facility

The new minibus facility is reportedly an all-new project by Lifan Group with its own independent investment. Its own-made minibuses will be the major products to be made at this facility ranging from mini passenger vans to mini-trucks.

A brand new 1.3L engine made by Lifan will power the first minibus model. The powerplant, boasting high output and low fuel consumption, is different from that of similar vehicles in the market. The new model is expected to go on sale in September 2009.

Several days ago, Lifan Group signed a joint venture (JV) agreement with the AIG which paved the way for Lifan's planned IPO and will see the two parties collaborate in passenger car, engine, motorcycle and foreign business.

Lifan aims to add 4.5 billion yuan to its investment and to target an annual capacity of 400,000 to 500,000 units by 2015.