SAIC Motor Corp. will incorporate a leasing company in Shanghai's Jiading District to promote the use of its electric cars and plug-in hybrids.

 

The leasing company will be a joint venture between SAIC and the Jiading District government. The municipal government announced the partnership, but offered no details about its capital assets or shareholder structure.

 

Under the agreement signed last week, the leasing company will have a fleet of more than 5,000 EVs and plug-in hybrids available for leasing in the Shanghai area by year end.

 

By 2018, the new company is expected to operate in more than 100 Chinese cities, and the number of available EVs and plug-in hybrids is to rise to more than 50,000 vehicles.

 

The company's target for 2020 is to expand its fleet size to 300,000 vehicles and operate across China as well as in a select number of overseas cities, according to the Jiading District government.

 

Last year, SAIC drafted an ambitious plan to expand its presence in China's EV market.

 

The state-owned automaker plans to launch more than 30 green models -- including electric cars, plug-in hybrids and fuel cell vehicles -- over the next five years.

 

To achieve the plan, it will invest more than 20 billion yuan ($3.1 billion) to design vehicles and key components such as the electric drive and battery management systems.

 

To date, SAIC has developed plug-in hybrid versions of the Roewe 550 compact sedan and Roewe 750 midsize sedan, as well as a fuel cell version of the Roewe 750. It also has introduced a small electric sedan, the Roewe e50.

 

Last year, SAIC sold 11,123 EVs and plug-in hybrids. It expects to double its sales this year.

 

SAIC, of Shanghai, builds gasoline-powered vehicles under the Roewe and MG brands and light commercial vehicles under the Maxus brand.

 

It also has joint ventures with Volkswagen and General Motors.