Sinopoly Battery Ltd. (00729.HK) is ramping up development of electric vehicles for commercial use, the Hong Kog Economic Journal reported Wednesday, citing vice president Jaime Che.
The company will change its name to FDG Electric Vehicles Ltd. to reflect the shift in business focus.
A vehicle assembly plant with an annual capacity of 100,000 units is under construction in Hangzhou and is expected to be operational in the first quarter next year, the report said.
The focus on electric vehicle production allows the company to better respond to demand from companies seeking to cut costs, Che was quoted as saying.
Sinopoly will produce a maximum of 20,000 vehicles in the first year and reduce collaboration in the battery business with other electric car makers to avoid conflict of interest.
The company has a strategic partnership with United States electric car manufacturer Smith Electric Vehicles Corp. The alliance will help the company win big-name clients such as FedEx Corp., Coca-Cola. and PepsiCo. Inc, the report said.
Sinopoly enjoys subsidies under a government incentive program for e-car manufacturers. The maximum subsidy is 142,500 yuan (US$22,881) for pure electric vehicles.
The company will sell its e-cars at a price range that makes a profit without government subsidies, Che was quoted as saying.
It expects to produce 500 to 1,000 electric buses this year.
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