Domestic firms are betting big on electric vehicles as they seek to diversify their offerings
Inside a BYD E6 Image: Bunnicula |
Lifan, GAC and BYD are all investing heavily in the future of electric and new energy vehicles in China.
Domestic automakers, which have struggled to maintain market share next to their international rivals, are looking to capture the attentions of China's affluent, young and conscientious car buyers.
Guangzhou Automobile Group Motor will invest 2bn yuan ($322m) in an assembly plant capable of producing electric, hybrid and fuel cell vehicles. The factory is scheduled to come online in 2018, but this date could be expedited if presale demand increases. Upon completion it will have an annual production capacity of 100,00 vehicles.
The company's goal is to sell 3,000 EVs and hybrids this year and more than triple that volume in 2016. It will also invest in two traditional facilities that will have a combined capacity of around 400,000 vehicles.
Chinese engine, automotive and motorcycle maker Chongqing Lifan Industry Co has pledged 3bn yuan ($484m) to develop EVs and battery swap stations. The new vehicles will also come with Internet connectivity, as the carmaker taps into the Internet of Things. Lifan plans to raise capital through the Shanghai Stock Exchange, where it is already listed.
Meanwhile, Warren Buffett-backed BYD Co has announced it will raise a staggering 15bn ($2.42bn) by offering up as many as 261.3m shares in order to fund investment in vehicle development and battery output. Shares at the Shenzhen-listed company have almost doubled in value this year as the Chinese stock market has reached new highs.