(Yicai Global) April 9 -- Shares of Xpeng Motors jumped after the automaker said it will build a smart car plant in the Chinese city of Wuhan to meet the country’s surging demand for electric vehicles.

Xpeng’s stock price [NYSE:XPEV] closed 4.1 percent higher in New York yesterday at USD35.45, giving the Guangzhou-based company a market capitalization of USD28 billion.

The733,000-square-meterfactory will produce 100,000 vehicles a year and is expected to be ready by 2023, Xpeng said in a statement yesterday after signing a deal with the local government.The plant will also conduct research and development.Xpeng did not reveal any financial details.

“We have a long-term strategic roadmap to embrace the sector’s transformation,” said Chairman and Chief Executive He Xiaopeng. “Expanding our capacity in key hubs like Wuhan plays a critical role.”

Along with other electric marques such as Tesla and Nio, Xpeng is striving to expand its market share as China’s new energy vehicle sales are growing faster than the wider passenger vehicle sector.In addition to the planned Wuhan plant, it is already building another factory in its hometown that is expected to be ready next year.

“Wuhan’s strategic location as an auto manufacturing and distribution hub will further enhance our supply chain management, sales and distribution network in the future,” He said.

Xpeng delivered 13,340 vehicles in the first quarter, more than in any other quarter, as deliveries have doubled year-on-year each month over the past nine months. Last month, deliveries hit a bit more than 5,100, doubling from a year ago.

China’s electric car sales jumped to a record 1.3 million units last year, accounting for 41 percent of global EV sales.Sales of all types of new energy vehicle more than tripled last month to 226,000, according to data published by the China Association of Automobile Manufacturers today.

Xpeng went public on the New York Stock Exchange last August, pricing its shares at USD15 apiece. The stock has halved in value since reaching a record high closing price of USD72.17 last November.

Editor: Emmi Laine, Xiao Yi