The Chinese-backed investment group that bought technology and assets from Sweden's Saab in 2012 now says it plans to build a $400 million factory and R&D unit for electric cars in Tianjin, northeast China.
National Electric Vehicle Sweden (Nevs) held a launching ceremony on Sunday in the Tianjin Binhai Hi-Tech Industrial Development Area, which also happens to be one of the auto maker's new part owners. The other partner unveiled at the same time last month was Beijing State Research Information Technology Company (SRIT).
“China is the world’s fastest growing market for electrical cars, but also the most competitive. We are likely to see closures and consolidations going forward,” the company’s CEO Mattias Bergman told me. “But there’s a gap in the market that we can fill.”
Electric automobiles are an integral part of Beijing’s plan to reduce air pollution, which prematurely kills hundreds of thousands of citizens every year. Local mayors and provincial leaders are being encouraged to invest in environmentally friendly vehicles and infrastructure.
"We have no monopoly just because Tianjin is a shareholder. We still have to make competitive cars," Bergman said. "But of course, it’s a great advantage to have Tianjin as an owner when they buy cars."
Total investment for the new factory, with a total capacity of 200,000 cars a year, and the R&D center is estimated to $400 million, Bergman said, plus costs for product development and tools.
However, it’s still unclear whether the company can still use the Saab brand name. Last year, Swedish defense group Saab AB revoked Nevs’ right to continue using the name after seeking bankruptcy protection. The auto making side of Saab's business had separated from its aerospace operations back in 1990. Meanwhile, Nevs is said to be developing a new brand for the Chinese market, Bergman said.
China’s government has introduced a number of promotions to boost the sales of e-cars, such as tax exemptions and subsidies on vehicle purchases. The Ministry of Industry and Information Technology said last week that production of new energy vehicles cars rose almost 300% in the first five months, compared to the same period last year.
Nevs will be joining an increasingly crowded field of competitors in China with a growing number of local manufacturers going up against international players like Tesla, BMW and Volkswagen. The country’s largest maker of electric cars is called
