Shanghai announced recently the construction of an industrial base for new energy cars and key spare parts and expects the output of the city's new energy car industry to reach 90 billion yuan by 2012.

The new base was inaugurated on July 18 and has a planned area of 9.5 square kilometers. First-phase investment will be 3 billion yuan.

According to the city's new energy car plan, Shanghai will have an output capacity of 10,000 new energy cars next year and the number will increase tenfold to 100,000 in 2012 and to 300,000 in 2015.

"To realize those goals, Shanghai needs an industrial base," said Wang Jian, director of Shanghai Economic and Informationization Commission.

The city also aims to achieve an output value of 90 billion yuan by the year 2012 by speeding up the industrialization of hybrid cars and electric passenger cars.

As a participating auto maker, Shanghai Automotive Industry Corporation (SAIC) will be the major beneficiary of the city's new energy car development, industry insiders said.

For more information, please consult the Chinese coverage here:

http://paper.cnstock.com/html/2009-07/21/content_71129319.htm

(China.org.cn July 21, 2009)