SAIC Opened New Energy Vehicle Base in Shanghai

SAIC Motor Corp, along with Shanghai municipal government officials, held an opening ceremony on Saturday for its new energy vehicle production base in Jiading Industrial Zone, Shanghai.

SAIC said it plans to invest 3 billion yuan (US$439 million) in the next three years to develop new-energy sedans and auto parts in the region.

The nation's largest car maker plans to introduce a hybrid Roewe 750 sedan in 2010 that could improve fuel efficiency by 20 percent compared with the existing model.

Another plug-in hybrid version of the Roewe 550 mid-class sedan that could reduce fuel consumption by 50 percent is due to hit the market in 2012, when SAIC's self-developed electric vehicles will also be marketed.

Shanghai vows to have 10,000 new energy vehicles on road by 2010, and the figure will grow to 100,000 in 2012 and 300,000 units in 2015. To achieve this target, the government pledged to offer favorable policies and government procurement to help SAIC market new-energy vehicles.

SAIC sold 1,225,568 vehicles in the January-June period, up 29.3% from a year earlier. The sales included 675,127 passenger vehicles, up 22.4% year on year, leading China's automakers in the period. Sales of commercial vehicles were 550,441 units, up 39.8% y/y, ranking 5th in CV sales of Chinese automakers.