(Yicai) May 27 -- Chinese commercial vehicle giant Beiqi Foton Motor said it has teamed up with local battery giant Eve Energy to establish a battery leasing joint venture for electric heavy-duty trucks to boost sales of its relevant vehicles.

The JV will focus on providing diversified battery leasing solutions for buyers of electric heavy trucks, Foton announced late yesterday. It will have a registered capital of CNY500 million (USD69.4 million), with Foton and Eve Energy each contributing half and splitting the ownership.

Batteries usually account for 40 percent to 60 percent of new energy vehicle costs, so adopting a battery leasing model can significantly reduce prices.

Establishing the new company will help Foton and Eve Energy expand their market presence, enhance the competitiveness of Foton's electric heavy trucks, improve the profit margin of the business by controlling battery resources, and boost sales, the Beijing-based firm pointed out.

The Chinese market share of new energy commercial vehicles, including heavy trucks, was only 17.9 percent last year, while that of new energy passenger cars reached almost 48 percent and will likely surge to 57 percent this year, according to data from the China Passenger Car Association. 

Foton's operating revenue from its medium and heavy truck business was CNY4.8 billion (USD666.3 million) last year, accounting for 10 percent of its total income, according to its annual financial report.

Editor: Martin Kadiev