Chinese new energy vehicle manufacturer Nio showcases its product lineup and cutting-edge technologies at the 2020 Beijing auto show. [Photo by ZHANG DANDAN/CHINA DAILY]

Shanghai district known for its financial services industry embarks on all-electric car project

Pudong New Area government has become one of the latest authorities vying to expand its new energy vehicle industry by recently teaming up with SAIC Motor to develop a new, premium electric vehicle brand called Zhiji Motor.

Zhiji Motor is jointly funded by the Pudong New Area government, SAIC Motor and multinational technology company Alibaba.

The new company is to be based at the Zhangjiang Hi-Tech Park in Pudong, and has raised around 10 billion yuan ($1.53 billion) in its initial round of financing.

Zhiji Motor will be a user-centric technology and innovation company dedicated to becoming a player in travel in the "intelligence era", according to SAIC Motor.

SAIC Motor, with its more than 60 years of vehicle manufacturing experience, global marketing network, capital reserve and advanced technologies will provide strong support for the new company.

Alibaba is expected to equip Zhiji Motor with the latest digital technologies such as its big data and cloud ecosystems.

Zhangjiang Hi-Tech Park, opened in 1992, has developed into a world-class high-tech industrial cluster and a core area for technology resources such as AI and chips.

According to its development plan, by 2025, Pudong will have an automobile industry with a total output value of 450 billion yuan, with a sales volume of new energy vehicles accounting for 30 percent of its total.

It has been reported that Zhiji Motor will locate its intelligent driving center, user operation center and brand operation center at Zhangjiang Hi-Tech Park.

The park will provide support for Zhiji Motor in terms of introducing professionals, supporting policies, public services and support facilities.

Pudong New Area is more well known for finance, science, technology and services, than automobile development and production, so the move comes as a bit of a surprise considering Shanghai's Jiading district is home to most of the city's auto industry players, insiders said.

To ensure the development of the NEV industry is strategic and targeted, Chinese authorities are taking action to curb redundancy and overcapacity.

The National Development and Reform Commission launched an investigation into NEV projects nationwide, requiring local development and reform commissions across China to report carmakers' investments in NEVs by Nov 18, reported the China Business Network.

The investigation would look into the project status, construction progress and annual production status of all registered newly-built NEV plants since 2015.

Data shows that from 2015 to the first half of 2017, there were more than 200 NEV production projects launched in China. They involved a total investment of 1.03 trillion yuan and a planned production capacity reaching 21.24 million vehicles.