(Yicai Global) Nov. 27 -- Building work on Huayu Automotive Systems' CNY1 billion (USD142 million) research and development center in Shanghai got under way today, Xinmin Evening News reported.

Located in Pudong New Area, the center will explore and develop technologies for key parts in smart cars and new energy vehicles, the report said, citing Huayu Managing Director Zhang Haitao. It is expected to be ready in 2022.

Formerly the auto parts division of state-owned SAIC Motor, Huayu was independently listed in 2009 following a restructuring with Shanghai Bus Group. It leads the country in the field of electric drives, focusing on developing driver assistance systems and intelligent cockpit technology.

The Shanghai R&D center will have room for 1,400 researchers, more than 80 percent of whom will come from non-automotive fields such as new energy, new materials and artificial intelligence, Zhang said.

He noted that Huayu has built several R&D centers and formed good relations with leading carmakers such as Volkswagen, General Motors, BMW, Mercedes-Benz, Tesla, Nissan Motor and Hyundai Motor. The new hub will upgrade it capability and build a tech ecosystem that can attract global talent and promote cross-border ties.

With US electric carmaker Tesla completing its Gigafactory in Shanghai's Lingang New Area, Pudong has become a focal point for the city's smart auto sector. An autonomous driving test site opened there in August, which was Lingang's first project since becoming the latest addition to Shanghai's free trade zone.

The construction site for Huayu's Shanghai R&D center covers 100,000 square meters.

Shares of Huayu [SHA:600741] rose almost 1 percent today to close at CNY26.60 (USD3.79) each. The stock has gained nearly 45 percent so far this year.