(Yicai Global) July 16 -- Zotye Auto plans to spend CNY1.5 billion (USD224.30 million) to build a production base for electronic parts for intelligent connected vehicles (ICVs) with an annual capacity of 1 million sets in China's eastern Anhui province.

The company already signed an agreement with the government of Shexian County under the jurisdiction of the scenic city of Huangshan yesterday to invest in and build a factory there.

It plans to set up a wholly-owned unit to take charge of the project's construction and operation, the automaker, based in eastern China's Zhejiang province, announced yesterday.

The county will provide about 200 mu (13.33 hectares) of land for the project in the second phase of the Shexian Economic Development Zone via public auction, per the announcement.

The move will help the company grow its ICV business and rapidly bolster its production capacity and product advantages by securing industrial policy support from local government, the announcement stated.

Zotye Auto also announced its set up in early May of a 50/50 joint venture in partnership with a wholly-owned unit of US-based Ford Motor with registered capital of USD20 million in eastern China's economically-developed Zhejiang province.

The goal is to provide local ride-hailing operators with customized smart pure electric car rental services, and digital technology services such as a digital fleet management scheme and intelligent connectivity.

Editor: Ben Armour