Japanese carmaker Toyota and China’s FAW Group intend to set up a joint venture to produce electric vehicles in the northern Chinese city of Tianjin, Reuters reported Saturday, citing a government document.
The document issued by authorities of the China-Singapore Tianjin Eco-City showed that the joint venture plans to invest 8.5 billion yuan ($1.22 billion) in the planned factory, which will manufacture some 200,000 new energy vehicles a year.
The Chinese government as of now has an amount approach which implies traveller vehicle makers are required to yearly deliver a particular extent of a specific proportion of their overall sales as new energy vehicles, as a major aspect of endeavours to advance deals of green cars.
Other foreign carmakers are additionally expanding the number of electric autos they produce in association with nearby players in China, the world’s biggest market. That incorporates Volkswagen, which has started making electric vehicles on a trial basis at its $2.5 billion Shanghai plant mutually settled with SAIC Motor before the end of last year.
In January, China’s new energy vehicle deals strongly dropped 54.4% year-on-year to 44,000 units, denoting the seventh sequential month of decrease in the wake of Beijing curbed government incentives halfway through a year ago.