SAIC Motor to form JV with parent on hybrid technology

SAIC Motor Corporation Ltd<600104>, China's largest auto maker, plans to form a joint venture with its parent the state-owned Shanghai Automotive Industry Corp (SAIC), the Shanghai Securities News reported on Tuesday.

The new venture, namely Shanghai Jieneng Automotive Technology Co, will have a registered capital of RMB 600 million and focus on developing hybrid or electric power technology, according to SAIC Motor's filing with the Shanghai Stock Exchange.

SAIC Motor will hold 10% stake in the new firm by paying RMB 60 million, while its parent SAIC will take the remaining 90%, the company said.

Meanwhile, the total investment in the new venture is reportedly to be RMB 2 billion, including RMB 100 million for fixed assets.