(Yicai Global) May 25 -- Chinese automaker Geely Automobile Holdings Ltd. has agreed with Chengdu municipal government to build two bases for its new energy vehicles and auto parts in the southwestern Chinese city, which will boost its presence in the local vehicle market. 

The Hangzhou-based firm will be located in the Chengdu Municipal Economic and Technological Development Zones, news site National Business Daily reported. 

By December last year, some 4.5 million Chengdu residents owned a car -- a number which is only second to Beijing, according to public data, which makes the city into a lucrative market for new energy vehicles.

After acquiring Swedish car brand Volvo AG, Geely has already decided to build one production base for the joint effort Polestar electric vehicle brand in the city, with a projected production capacity of 100,000 automobiles by 2019.

Editors: Emmi Laine, William Clegg