Shanghai (ZXZC)-On Oct. 31, Changan Automobile announced that it plans to invest Contemporary Amperex Technology Limited (CATL) by purchasing the fund shares of Zhenjiang Demao Hairun Equity Investment Fund Partnership, aiming to ensure its development and also strengthen the cooperation with CATL.

According to the announcement, Zhenjiang Demao Hairun Equity Investment Fund Partnership had invested RMB 1 billion to gain 1.18% shares of CATL in June, 2017. Now, Changan Automobile planned to sign a contract with China Merchants Wealth to acquire its shares in Zhenjiang Demao Hairun Fund with RMB 518,743,029.48, whose original cost was RMB 490 million. After the acquisition, Changan Automobile will be the partner of Zhenjiang Demao Hairun Fund with partnership shares of 32.67%, and will possess 0.3855% of CATL's shares indirectly.

Changan Automobile signed a strategic cooperation agreement with CATL in June, 2016, and had started the EV and PHEV projects. Changan Automobile stated that the acquisition will enhance the cooperation with CATL. In a short term, this strategic investment will have little influence on the production and operation for Changan Automobile, but in the long run, it will benefit the technological promotion and industrial application of the power battery products for Changan, and will provide more NEV products meeting future fuel consumption standards, thus will be conducive to the lasting development of the company.

On Oct. 19, Changan Automobile released Project Shangri-La, planning to invest more than RMB 100 billion in automotive industry and realize the transformation from fuel-powered vehicles into new energy vehicles. According to the plan, Changan will build a platform for three new energy vehicles by 2020, and will cease selling petrol-powered vehicles by 2025.

It is released that Changan NEVs soared 150% to 35,000 units during January and September, and the annual sales of 2017 is expected to reach more than 50,000 units.