Feb. 17, 2012 (China Knowledge) - Lifan Industry (Group) Co Ltd<601777>, a top motorbike manufacturer in China, has announced plans to spend RMB 3.88 billion or US$617.53 million to build an auto plant at its headquarters in Chongqing
RMB 2.3 billion of the total investment will be fixed-asset investment, while the remaining RMB 1.59 billion will be liquid fund, said analyst, adding that the vehicle project is immense for a manufacturer who owns less than RMB 5 billion in net asset.
The new plant, which will be located in Liangjiang New Area and cover a land area of 880 mu, is scheduled to be completed in 18 months with a designed annual output capacity of 150,000 vehicles.
In 2011, Lifan produced 125,700 and sold 116,600 vehicles, compared with over four million vehicles last year sold by SAIC Group, the parent co of China's No.1 carmaker SAIC Motor Corp Ltd<600104
Last month, Lifan's vehicle output surged 74.77% year on year to 6,790 units, while the firm's auto sales has reached 6,338 units, up 18.16% from a year earlier, sources reported.