(Yicai Global) March 30 -- Sinomach Automobile Co. is leading a project to build a new-energy vehicle (NEV) production facility inGanzhou in southeast China’s Jiangxi province, the city’s government announced today.
About CNY8 billion (USD1.2 billion) will be invested in the project. Around CNY4 billion is projected to be used in the first phase of construction, public information shows. A manufacturing plant and base with a capacity of 100,000 units a year will be made. Vehicles will start rolling off the assembly line next year.
The Tianjin-based company is owned by China Machinery Industry Group Co. and specializes in automobile wholesale, trade and retail services as well as aftermarket businesses.
The Chinese government offers subsidies to NEV manufacturers and consumers to stimulate investment and demand in the emerging industry. The subsidization rate has been lowered over the years, making the market’s future uncertain.