BYD Co. Ltd. (01211.HK) and the Hebei provincial government have entered into a strategic cooperation agreement following the central government’s call to promote the use of new-energy vehicles.
Under the deal, BYD will boost investment and promote new-energy vehicles in the region, the Hong Kong Economic Journal reported Wednesday.
Chengde city will partner with BYD to construct a new base for the production of new-energy cars and related parts, the city government was quoted as saying on its website.
Investment in the project is expected to total 2 billion yuan (US$326.57 million). An annual capacity of 5,000 electric motor coaches has been envisaged.
Over 20,000 new-energy vehicles will be on the roads in Beijing, Tianjin and Hebei in the next 24 months, with at least 16 percent of public buses to use alternative fuels, the central government pledged last week.
BYD is tapping the opportunity to establish the largest research and production base in northern China and gradually expand the production lines to include motors, electrical controls, power batteries, and other related parts.
New-energy vehicles have become a key development area for the company, chairman Wang Chuanfu has said.
The Hebei government has set a goal to launch 5,715 new-energy cars from now to the end of 2015.
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