Changan Auto gets $2.9m for hybrid car making
Shanghai, December 1 (Gasgoo.com) Chinese automaker Changan Auto has obtained a 20 million yuan ($2.93 million) government grant for its hybrid car subsidiary, Chongqing Changan New Energy Auto, said local media on Friday. The newly founded company will develop several hybrid models and launch them to the market by 2012.
After three years of preparation, the Chongqing Changan New Energy Auto was officially founded on November 27 in western Chinese city of Chongqing. China's technology minister Wan Gang attended the founding ceremony, at which he announced that China will put 60,000 new-energy vehicles into trial service by 2012 to reduce pollution and fuel imports. These vehicles will be used for the public facilities, postal services and others in 11 Chinese cities first.
Chongqing city has granted 20 million yuan to the local Changan New Energy Auto to help fund research into alternative energies for driving future vehicles. The company has registered capital of 29 million yuan, with Changan Auto Group holding 65% stake and the other 35% going to Chong municipality. More investment is expected to be injected into the company if its current talks with venture capital firms are fruitful.
Changan Auto Group started its project of setting up a new-energy auto company in June 2006 and registered this company two years later. Changan Auto joined the national "Project 863" in 1998 and has invested a total of 250 million yuan in the hybrid vehicle research, now leading the Chinese auto technologies from the complete auto to engine to hybrid power system. The new subsidiary will develop several hybrid models and launch them to the market by 2012.
The Chinese government will support automakers' research in the area through financial assistance and preferential policies, sci-tech minister Wan Gang said in Chongqing. The western Chinese city has purchased 10 hybrid cars made by Changan Auto and will buy more than 1,000 units from its new-energy auto maker in the next three years.