Lifan to hike output by sixfold, report says
Lifan Industry (Group) Co. plans to increase its annual passenger vehicle production capacity to 300,000 units by 2013, up from its current 50,000 units, according to a local media report.
Under a land-use agreement negotiated with the local government, Lifan will build production and R&D facilities in Chongqing 's Liangjiang New District for vehicles and key components such as engines, the Chongqing Evening News reported.
Lifan's investment will total 3.5 billion yuan ($531 million).
By 2013, the new facilities will be able to build 200,000 gasoline-powered vehicles, plus 50,000 electric or hybrid vehicles a year, according to the report.
Lifan - based in the southwest China city of Chongqing - started as a motorcycle manufacturer. It began making cars in 2006.
At its existing plant in Chongqing, Lifan builds the 320, 520 and 620 compact sedans under its own Lifan brand. This year the company plans to launch the 720, a mid-sized car, as well as its first SUV model.
In 2010, Lifan sold 58,400 vehicles, up 39 percent year-on-year, according to J.D. Power.
