Shanghai (ZXZC)- Chinese auto group Dongfeng Motor on Feb. 2 signed a framework agreement with the government of Xiangyang city, Hubei province to launch a new energy passenger vehicle (NEPV) manufacturing project, which is planned to involve a total investment of 5.31 billion yuan ($788.711 million), according to a post on the group's WeChat account.

Photo credit: Dongdeng Motor

Under the agreement, Dongfeng Motor will build an NEVP manufacturing base in Xiangyang city, in which the automaker will introduce its in-house developed S31 platform-based models across the full lifecycle, including the annual models and facelifts.

Photo credit: Xiangyang Technology

Under the project, the S31-based model to be introduced first is expected for trial and volume production in Nov. and Dec. of this year, respectively, according to “Xiangyang Technology”, a WeChat account of Xiangyang government.

Moreover, Dongfeng Motor will team up with Xiangyang’s local authorities to construct an industrial park in order to provide the aforesaid NEPV base with components, and also help the city speed up transition and upgrade of the automotive industry.

The supporting industry park will have the R&D and production facilities for such components as power batteries, exteriors and interiors for commercial vehicles and passenger vehicles, as well as automobile upper and lower box covers, according to Xiangyang Technology.

Dongfeng Motor said it expected the new automobile and auto parts projects to realize vehicle sales of 45 billion yuan ($6.684 billion), bring in auto parts sales of 28.523 billion yuan ($4.237 billion), and create 10,500 jobs cumulatively by the end of 2028.