GUANGZHOU -- Leading Chinese electric-vehicle maker BYD plans to spend 10 billion yuan ($1.5 billion) to build its fourth plant for passenger cars.
The automaker signed an agreement Thursday with the government of the eastern city of Changzhou to produce electric vehicles and key components there. The new site will have an annual capacity of 400,000 autos.
Details on when the factory will break ground or the operational start date were not disclosed
BYD controls a fifth of China's electric-vehicle market, the largest in the world. The automaker, which does not disclose its production capacity for electric cars, sold about 250,000 of them last year.
Meanwhile, BYD is rapidly building up existing electric-vehicle plants. The company is spending 2 billion yuan at its Xi'an factory in central China to lift annual output capacity to 400,000 units from 100,000. Facilities in the central city of Changsha will receive 3 billion yuan to increase capacity to 300,000 units by next year, up from 100,000.
China's government aims to boost annual sales of electric and other "new-energy" vehicles to 2 million by 2020, up 60% from 2018.