China: Guangzhou Auto to spend $322 million to build electric car plant image

Guangzhou Automobile Group Motor mulls the construction of a Chinese factory worth 2 billion yuan ($322 million), catering exclusively for the production of green “new energy” autos, according to a senior executive.

Chinese carmakers, which are fresh off gaining market share back from their global rivals, have started looking into the next segment of growth – delivering a flurry of new energy vehicles – electric cars, hybrids and fuel cell vehicles – as China is expected to impose new, stricter fuel economy goals each year by 2020, as the government tries to curb down pollution engulfing most of the major urban areas. The new assembly facility built by Guangzhou would be able to deliver each year around 100,000 units and should be up and running in 2018. Vice General Manager Liang Weibiao added during an interview late last week the schedule might be advanced to fit the needs of the market if the sales of new energy models increase faster than planned. The company is a subsidiary of Guangzhou Automobile Group and manufactures own-brand cars.

Lian, who is in charge of sales and other departments, refrained from disclosing the plant’s construction location. “Many places ardently want us to build there. There are some that, in order to get us to build locally, make known that they are now thinking of buying a large quantity of our products,” commented the executive. Guangzhou Automobile Group Motor wants to deliver 3,000 units of new energy vehicles this year, with a goal of 10,000 autos next year. It has hybrid and range-extended electric versions of its GA5 sedan, and will also add a hybrid variant of the GS4 SUV later on next year.

Via Reuters