Wanxiang gets permit to produce Karma cars in Hangzhou
Wanxiang Group, owner of Karma Automotive, has become the second automotive supplier to receive permission from China's top economic planner to produce electric vehicles.
The National Development and Reform Commission gave Wanxiang the go-ahead as part of its strategy to encourage "outsiders" -- that is, startups and other nontraditional manufacturers -- to compete with automakers in China's EV market.
Wanxiang Group, which was founded by Chinese billionaire Lu Guanqiu, will be allowed to build an assembly plant in the east China city of Hangzhou with an annual capacity of 50,000 vehicles, according to a notice posted on the agency's website on Friday. It is the sixth company under the agency's special scheme to get approval.
In 2014, Wanxiang bought the bankrupt Fisker Automotive Inc. and has provided financial backing to restart it as Karma. In September, Wanxiang cleared an environmental impact review to build a 2.5 billion yuan ($360 million) plant in Hangzhou to produce cars on the Karma platform.
Out of the plant's production capacity, Wanxiang plans to produce 39,000 two-door Atlantic coupes. The car has a top speed of 216 kilometers per hour (134 mph) and can accelerate to 100 kph in 6.5 seconds, according to the company's environmental application.
Last month, Minth Group became the first supplier to get permission to produce EVs under the special scheme. Others that received approval are Beijing Electric Vehicle Co., Hangzhou Changjiang Passenger Vehicle Co., Beijing CH-Auto Technology Co. and a unit of Chery Automobile Co.
China has been issuing production licenses to automotive newcomers as part of its push to encourage innovation. Billionaires such as Jack Ma, Terry Gou, Li Ka-shing and Jia Yueting are among investors who have spent at least 14 billion yuan to develop EVs.
Wanxiang Group, which was founded by Chinese billionaire Lu Guanqiu, will be allowed to build an assembly plant in the east China city of Hangzhou with an annual capacity of 50,000 vehicles, according to a notice posted on the agency's website on Friday. It is the sixth company under the agency's special scheme to get approval.
In 2014, Wanxiang bought the bankrupt Fisker Automotive Inc. and has provided financial backing to restart it as Karma. In September, Wanxiang cleared an environmental impact review to build a 2.5 billion yuan ($360 million) plant in Hangzhou to produce cars on the Karma platform.
Out of the plant's production capacity, Wanxiang plans to produce 39,000 two-door Atlantic coupes. The car has a top speed of 216 kilometers per hour (134 mph) and can accelerate to 100 kph in 6.5 seconds, according to the company's environmental application.
Last month, Minth Group became the first supplier to get permission to produce EVs under the special scheme. Others that received approval are Beijing Electric Vehicle Co., Hangzhou Changjiang Passenger Vehicle Co., Beijing CH-Auto Technology Co. and a unit of Chery Automobile Co.
China has been issuing production licenses to automotive newcomers as part of its push to encourage innovation. Billionaires such as Jack Ma, Terry Gou, Li Ka-shing and Jia Yueting are among investors who have spent at least 14 billion yuan to develop EVs.
