Shanghai (ZXZC)- On February 11, Zhejiang Geely Holding Group signed an agreement with Changxing County of Zhejiang Province. Geely plans to invest a total of RMB 32.6 billion to build vehicle production base, transmission production base, auto parts industry park and so on.

The vehicle production capacity of this program will be up to 300,000 units and the first phase is expected to start construction by the end of October, 2018.

In January, Geely sold 155,089 vehicles, surging 51 percent from a year earlier. The Hangzhou-based automaker eyes 1.58 million vehicle sales in 2018, jumping 27 percent compared with 2017 while the January sales took up nearly 10 percent of its annual target.

The new program in Changxing will improve production capacity to meet market demands. The products of this program will cover variants from small-size new energy vehicle module platform, including hybrid electric vehicle, plug-in hybrid electric vehicle. 

Out of the total investment, RMB 22.4 billion will be used to build a new energy vehicle production factory while the rest will be for the transmission production program, which is expected to have an annual capacity of 600,000 units.

In accordance with Geely’s plan, its new energy vehicle sales will reach 1.8 million units in 2020. Currently, there are only two new energy vehicle models on sale, Emgrand EV and Emgrand PHEV. More models in this segment will be put into market to achieve the sales target, such as the new energy versions of Emgrand GS, Emgrand GL. In the future, Geely will introduce much more products built on AMA and PMA new energy platforms.