Shanghai (ZXZC)- GAC Mitsubishi Motors on July 8 celebrated the first spade cut for its new energy vehicle (NEV) manufacturing base in Changsha, capital of Hunan province, according to Changan municipal government, which cited a local media report.

The first model jointly developed by GAC Group and Mitsubishi Motors is expected for mass production in 2021.

(Photo source: GAC Mitsubishi's WeChat account)

The development of the significant NEV model will be technically supported by two parent companies, and help the Chinese and Japanese automaker cement their cooperation.

(Qizhi EV, photo source: GAC Mitsubishi)

GAC Mitsubishi has three locally-produced fuel-burning models on sale-- the ASX, the Outlander and the Eclipse Cross, and one BEV model “Qizhi EV”, a badge-engineered model of GAC New Energy GE3. Due to the pressure led by China's dual credit policy, the joint venture may be obliged to deal with the transfer of NEV credits with its affiliated companies or spend a huge amount of money on purchasing positive credits from other firms if its existing positive NEV credits are insufficient to offset the negative credits incurred based on fuel consumption.

The yet-to-be-launched NEV model will carry many connectivity features, aiming to offer consumers all-new green travelling experience, according to general manager of GAC Mitsubishi.

As one of mainstay automakers for Changan's automotive industry, GAC Mitsubishi has built there a complete vehicle plant, an engine factory as well as a R&D hub.

(Photo source: GAC Mitsubishi's WeChat account)

While the project of NEV base kicked off, the building of the R&D hub was formally completed at the same time. Reportedly, the R&D center is set to start operation next year. It will focus on the R&D of refreshed models and the technology innovation, and is ambitious to help the joint venture improve the local R&D ability in design, testing, validation and NEV areas.