The money are planned to be spent on the construction of two enterprises in Fujian province and metropolis of Tianjin, in China. The combined production capacity of the facilities will amount to 115,000 electric cars per year.
New enterprises will be built for the purpose of meeting the rapidly growing demand for electric vehicles in China. Over the past three years, their sales have jumped 7 times: while in 2014, 75,000 electric cars were sold, in 2016, this figure rose to 507,000. By 2020, the size of China's fleet of electric vehicles will reach 5 million.
Such popularity of electric cars is due to the generous support by the Chinese authorities: in order to reduce the cost of machines, the government paid the manufacturer up to 110 million yuan in subsidies for a car.