$12 billion deal signed in China to make 1.5 lakh electric cars

BEIJING: A Chinese leasing firm has signed a major USD 12-billion deal with a Chinese-owned Swedish car company to produce 150,000 electric vehicles in five years, the company said today.

National Modern Energy Holdings (NMEH), jointly invested and founded by Chinese and Swedish companies, said its Swedish investing party National Electric Vehicle Sweden (NEVS) will produce 150,000 electric vehicles for China's Panda New Energy firm based on Saab 9-3 sedan-platform by the end of 2020.

In addition, the 78 billion yuan (USD 12 billion) deal also includes 100,000 electric vehicle products and services from companies associated to NEVS and its owner, state-run Xinhua news agency quoted the agreement as saying.

Owned by Chinese investors, NEVS took over Swedish car manufacturer Saab's assets and technologies after Saab's bankruptcy in 2012.

NMEH, located at Binhai New Area of north China's Tianjin municipality, aims at producing blade and extended range electric vehicles with the support of NEVS, Peng Jinchun, general manager of NMEH said.