Automobile & Parts


1. Introduction to the Project
1.1 Project Background
1.1.1 Product Introduction
The project will manufacture a variety of 4-seat electric cars, 2-seat electric cars, electric trucks, electric motor coaches, and electric agricultural vehicles.
1.1.2 Market Prospects
The new energy cars of China were started late. In April, 2005, the National Development and Reform Commission promulgated the Announcement of Automobile Manufacturers and Products and issued the first commercial vehicle license for the hybrid power passenger cars to Dongfeng Motor Group Company Limited. At the end of 2005, the Commission issued the first passenger vehicle market license for Prius, the hybrid power passenger car of FAW Toyota. The market of the new energy cars of China with the hybrid power cars as the main part has been officially started. Stimulated by the relevant policies and driven by some new energy car demonstration activities of Beijing Olympic Games and Guangzhou Asian Games, etc., the new energy car market of China has been developed, to some extent. The data of the Automobile Association of China show that the output of the new energy cars of our country was 13552 and the sales volume of the new energy cars was 13791 in 2014. The output and sales volume of the purely electric cars have been increased by 98.8% and 103.9%, respectively in 2015, compared with those in the previous year. The average growth rate in the recent 3 years has been 70% and it can be seen that the growth is very rapid; but the two numbers are less than 0.1%, compared with the output and sales volume of 19.2718 million and 19.3064 million cars in the whole country. It can be seen that the potential is big. At the beginning of 2009, the Chinese Government started the project of “1 thousand cars in 10 cities”. Its main contents are to provide the financial subsidy and plan to take about 3 years to develop 10 cities every year where 1000 new energy cars will be developed for the driving demonstration. Benefiting from the pilot promotion activities (the passenger car became the first car model promoted), the passenger cars has become the new energy car models with the maximum domestic sales volume. The use of some car models such as new energy cars and private cars (limousine cars) produced by the enterprises and the market are still at the starting stage and the development space will be big in the future. Because the hybrid power car has the more mature technology and more economical cost than the purely electric car and fuel battery car, it has got a lot of licenses of listing in the market. At present, the mainstream products of the new energy cars of China are the hybrid power cars. The purely electric cars have been rapidly developed in recent years, the fuel battery cars are still at the stage of development and experiments and they are generally put into the demonstration projects. Because their prices are high, the market sales have not been truly established.
Shenzhen has opened up 15 demonstration bus routes, with 244 hybrid electric vehicles and 50 electric taxis in operation demonstrations. By the end of this year, there will be another 850 hybrid electric buses and 100 electric taxis in operation. In the next two years, the city will demonstrate and promote 34000 new-energy vehicles of various kinds, including 4000 buses, 2500 taxis and state-financed vehicles, and 25000 private cars. In the next two years, it means that inventory of electric vehicles will exceed 1% of the motor vehicles in the city, which means that Shenzhen is hopeful to become a city with the most electric vehicles and that the era of electric vehicles is approaching.
1.1.3 Necessity of the Project Construction
(1) Analysis from the atmosphere pollution perspective
The atmosphere pollution can no longer be ignored in major cities of our country. Auto emission is one of the primary pollution sources. China has 16 of its cities listed among the top 20 cities with the most serious air pollution in the world. Current, there are 10 vehicles per 1000 people in China, but we have to import thousands of tons of oil every year due to lack of petroleum resources. With economic growth, assuming that the Chinese per capita vehicle ownership reaches the current level of the world – 110 vehicles among every 1000 people, China’s vehicle inventory will increase by 10 times and imported oil supply will become a big problem.
So, the research on electric vehicles is not an interim short-term measure, but it is a long-term significant and strategic consideration.
(2) Analysis from the energy-saving and emission reduction perspective
Researches on electric vehicles have shown that its energy efficiency has surpassed that of petrol motor vehicles. In cities, in particular, vehicles move on and off at a slow speed, so electric vehicles are more adaptable. When staying motionless, electric vehicles do not consume electricity; while braking, electromotors can automatically become generators to attain recycled use of energy when brake is applied to decelerate. Some other researches have shown that when the same amount of oil after preliminary refining is sent to a power station to generate electricity, which is charged into battery, which is used to drive vehicles, the energy utilization ratio is higher than the refined petrol which is used to drive vehicles through gasoline engines. So, it benefits energy conservation and reduction of carbon dioxide discharge.
(3) Analysis from the cost perspective
Electric vehicles do not need the oil tank, engine, transmission, cooling and exhaust systems, so, compared with internal combustion gasoline engines in traditional vehicles, electromotors and controllers cost less and electric vehicles have high energy conversion ratio. The energy of electric vehicles comes from electricity, which is from large generator sets, so its efficiency is incomparable to small gasoline engines or even hybrid power engines. Electric vehicles will reduce costs as a result. According to the open data on BYD F3e electric cars, the electricity consumption for a car to run 100 km is 12 kwh. Assuming 0.5 Yuan for 1 kwh, the cost of running 100 km is only 6 Yuan. The original F3 gasoline engine car consumes 7.6 liters of petrol. Assuming 7.35 Yuan for 1 liter of petrol, the cost is 55.86 Yuan. In comparison, electric vehicle use cost is only 1/8 of that of traditional gasoline vehicles.
The power comes from ferric phosphate lithium battery. Its service time is about 7-8 years. The project assumes that the electric vehicle battery is replaced in seven years, and it is used for another seven years (fuel vehicle scrapping period is 14 years, and electric vehicles have the same service period). The price is in general 40000 Yuan per set. The annual depreciation is 5714 Yuan. 5714 Yuan will drive a fuel vehicle for 10229 km. An electric vehicle will consume 1227.48 kwh electricity to run 10229 km. Each kwh electricity costs 0.5 Yuan. The use cost is 613.74 Yuan. The total cost for an electric vehicle to run 10229 km is 6327.74 Yuan. Viewed from the long run, electric vehicles are more energy economical and environment-friendly, so it is an inevitable historical trend for electric vehicles to replace fuel vehicles. 
1.1.4 Advantageous Conditions for the Project Construction
(1) Industrial foundation advantages
Baicheng is the city of the automobile parts industry with a long history, owning more than 20 automobile parts manufacturers. The matching products have a wide coverage area and complete varieties. There are nearly 1 thousand main products and varieties. The city has established the close industrial chain with a lot of automobile manufacturers such as FAW, so the city is called the “automobile matching base city of Jilin Province”.
(2) Location condition advantages
The development zone where the project is located is part of the urban area of Baicheng, bordering Zhenlai County and Da’an City in the east, neighboring Taonan City in the south and the west and Xing’an Union of Inner Mongolia Autonomous Region in the north. In the zone, there are Pingqi, Changbai, Bai’a and Tongrang trunk railways, G302 Hunwu National highway, S219 Qishuang and Provincial Highway (original S207), constituting the railway and highway network extending in all directions. It is the important traffic hub city in the east of Inner Mongolia. In the zone, there are the roads connecting “all the villages”, with the total mileage of 1136.6 km, 100% of the administrative villages and 76% of the natural villages have been connected with roads, ranking in the first places in the cities (counties and districts) of the whole province.
(3) Service environment advantages
The development zone where the project is located actively builds the good-faith government, provides the good investment environment for the investors and exercises the soft environment operating mechanism with one-station office, integrated services and contracting of the whole process of a project as well as whole-process support of an enterprise. It motivates all the forces to the invitation of businessmen to open companies, comfort, stabilize and benefit the businessmen to promote the rapid economic development of Baicheng City. The development zone has the total area of 171km2 and rich land resources, so it is not difficult to acquire the land for the project construction.
(4) Electric power resource advantages
Baicheng has a thermal power plant with installed capacity of 2×660000 kw, which can meet the requirements for large power supplies to industrial projects. In addition, the Baicheng region is rich in wind power resources, and its wind power plants have grown into a scale development trend. So the project has rather big advantages in terms of electric power resources. 
(5) Policy conditions
In June 2010, many ministries and commissions such as the Ministry of Finance jointly promulgated the “Notice of Pilot Subsidization of Private Purchase of New Energy Vehicles”, and it designated five cities of Shanghai, Changchun, Shenzhen, Hangzhou and Hefei to launch the pilot work to subsidize the people who would buy private vehicles driven by new energies. The “Notice” made it clear that the central financial authority would give one-off subsidies to the people who would buy, register and use the plug-in hybrid power passenger vehicles and electric passenger vehicles in the pilot cities. The subsidy standards would be subject to the motive power battery packs, offering 3000 Yuan / kwh to the new energy vehicles that reach the subsidy standards. The max subsidy to the purchase of a plug-in hybrid power passenger vehicle was 50000 Yuan, and 60000 Yuan to the purchase of an electric passenger vehicle.
Jilin Province is an important automotive manufacturing base in China. During the “12th five-year plan” period, it will vigorously develop new energy vehicles and it has planned to reach the annual production capacity of 200000 such vehicles. It is easy for this kind of project to get national support in terms of policy and capital. 
1.2 Construction Scale and Product Scheme
1.2.1 Product Scheme
The project products are 4-seat electric cars, 2-seat electric cars, electric trucks, electric passenger coaches, and electric agricultural vehicles, totaling 50000 vehicles.
1.2.2 Construction Contents
The project takes up an area of 200000 square meters. It will construct workshops of 80000 square meters and purchase five electric vehicle production lines. When the project is completed and in operation, it will manufacture 50000 electric vehicles a year.
1.3 Total Investment of the Project and Capital Raising
1.3.1 Total Investment of the Project (see Table 1)
The total investment in the project is 1458.1 million Yuan, including construction investments of 1105.7 million Yuan and working capital of 352.4 million Yuan.
Table 1: Summary Table of Total Investment of the Project      Unit: RMB10,000
Expense Name
Amount of Investment
Proportion of Total Investment %
Construction investment
Interest incurred during construction
Not temporarily considered
Circulating capital
Total Investment of the Project
Note: "RMB10,000" in the Table shall be RMB.
1.3.2 Funds Raising
The total investment in the project is 1458.1 million Yuan, and all of it will come from the self-financing of the investing enterprise.
1.4 Forecasting of Economic and Social Benefits
1.4.1 Analysis of the Main Financial Indexes (see Table 2 for details)
When the project is completed, its annual sales incomes will be 4800 million Yuan, operation taxes and additions 8.8 million Yuan, VAT 88.1 million Yuan, corporate income tax 89.7 million Yuan, and net profits 269.4 million Yuan. The investment recovery period is five years.
Table 2:       List of Major Indexes for Forecast of Financial Benefits          
Business income
Normal year
Total profit
Normal year
FIRR of all investments
After income tax
FNPV (Ic=10%)
After income tax
Period for recovery of all investments (after tax)
Including 1 year of construction period
After income tax
Note: "RMB10,000" in the Table shall be RMB.
1.4.2 Social benefits
The project will mobilize local economic development and add jobs.
1.5 Cooperative Ways
Sole investment
1.6 What to be Invested by Foreign Party
Capita or other methods
1.7 Construction Site of the Project
Baicheng Economic Development Zone
1.8 The On-going Condition of Project
The project proposal has been completed.
2. Introduction to Partner
2.1 Basic Conditions
Project owner’s name Jilin Province Baicheng Economic Development Zone Management Committee
Legal address: Room 1009, Development Building, No. 88 Xingfu South Street, Baicheng City
2.2 Overview of Project Undertaker
The Baicheng Economic Development Zone is a provincial-level development zone founded upon the provincial government approval in February 1998. It is next to the urban Baicheng. In 2010, the development zone expanded from the original 4 square kilometers to 171 square kilometers. With more than 10 years’ development, a large number of enterprises from Jilin Province and other parts of the world have settled down in it to make investments in projects, such as the US Delphi Packard, CECT, Jinshida electrics, Zhongyi Fine Forging, Tongye Machinery, Four-Season Saxo, Jinshi Industry and Trade, Guangxi Yulin Pharmaceutical, China Sinopharm Group, etc. The development zone has four leading industries of auto parts supply, coal electric power, textile and pharmaceutical developing together. After the expansion, the economic development zone has focused on the establishment of “six industrial parks” as its new projects, namely, the auto part and refit vehicle industrial park, the coal electric power and new material industrial park, the biological and pharmaceutical industrial park, the textile and garment industrial park, the business and logistics industrial park and the cultural creation industrial park. It will stick to its “one-stop” and “one-process” whole-process service plus no-distance, no-barrier and no-time-limit service to businesses and investments. At the same time, it will offer such preferential policies as “one discussion on one issue” in terms of land, taxation, etc. based on overall considerations of the business project’s nature, investment size, benefit and number of employees.
2.3 Contact Method
Contact Unit Economic and Technical Cooperation Bureau of Jilin Province Baicheng Economic Development Zone
Address Floor 10, Development Building, No. 88 Xingfu South Street, Baicheng City
Contact Person Sun Shuhai 
Tel :0436-5086035    0436-5086990
Fax 0436-5086019 
Postal Code 137000
Contact person of city (prefecture) of the project: Liu Lin
Tel 0436-5081011   13943687990
Fax 0436-5081011
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