(Yicai Global) Aug. 24 -- Guangzhou, China’s biggest carmaking city, is to pledge CNY100 million (USD14.5 million) over the next five years as a marketing incentive to help its automakers almost double their output and to become one of the country’s top producing cities of new energy vehicles.

Guangzhou will support traditional carmakers to build world-renowned car brands through integration, mergers and acquisitions and strategic co-operations, the municipal government said today. It will also give rewards of up to CNY100 million (USD14.5 million) to new energy vehicle firms which sell more than 10,000 units in the first year of a new model's launch.

Through these incentives, the city aims to nearly double its auto output to five million units from 2.92 million by 2025, which will boost the output value of large automobile manufacturers to CNY1 trillion (USD144.6 billion) from CNY546.1 billion last year.

It also aims to become one of the top three producers of NEVs in the country, to build the nation’s best smart vehicle testing areas and a complete auto parts supply system.

The city will also give cash incentives to battery recycling projects as well as manufacturers that provide carmakers with parts and components and promote infrastructure construction and the commercial application of smart vehicles, it said.

Guangzhou has issued 24 road test licenses for autonomous driving to six companies so far including the city’s GAC Group. Twenty-one of these licenses allow passengers on board. Local real estate giant Evergrande Group has also entered the new energy car market and earlier this month unveiled its first six vehicles.

Editor: Kim Taylor