SAIC to invest RMB 2 bln in electric cars development

Shanghai Automotive Industry Corporation (SAIC) Group, China's largest automobile manufacturer, announced it will inject RMB 2 billion with its listed unit SAIC Motor Corp Ltd to establish a joint venture on the R&D of electric-gasoline and electric cars, sources reported.

According to SAIC Motor's statement filed with the Shanghai Stock Exchange, the joint venture will be located in Pudong Zhangjiang Hi-tech Park with a registered capital of RMB 600 million, of which RMB 540 million will be contributed by SAIC Group and the rest RMB 60 million is invested by SAIC Motor.

The total investment is estimated to reach RMB 2 billion, of which RMB 100 million will be earmarked for fixed assets and the rest in research and development.

SAIC will put more focus on the R&D of new energy auto and further enhance the company's technological innovation, according to SAIC's chairman.