China's SAIC Motor Corporation Limited is on course to significantly increase its production capacity with the addition of another manufacturing facility in East China's Fujian province.
The automaker announced on Saturday that its vehicle assembly plant in the city of Ningde has already started production and has rolled off its first vehicle.
According to SAIC Motor, the facility in Ningde will mainly be producing MG-branded new energy vehicles, some of which are meant for the European market.
The first vehicle that rolled off the production line in the new factory is the company's MG eHS.
The vehicle is a plug-in hybrid sport utility vehicle (SUV), which is the third new energy vehicle under the MG brand in China. The other two new energy vehicles are the MG 6 PHEV and the fully-electric MG EZS. The MG eHS is basically the hybrid version of the MG HS. The vehicle is equipped with a 1.5-liter engine and a front-mounted electric motor with a combined maximum power of around 300 hp.
SAIC Motor's new facility, which is estimated to have cost the company more than $702 million, has an annual production capacity of 300,000 vehicles. SAIC Motor plans to add a second phase area within the facility, which will have the same annual production capacity.
The entire facility, including the second phase, is expected to generate an output value of close to $14 billion once it is fully operational.
During the launching ceremony to commemorate the start of production, SAIC motors revealed that the first batch of its 30 suppliers has already begun deliveries to the plant. The company stated that the factory has generated nearly 10,000 jobs locally. The company's Ningde production base is its fourth-largest production facility in the country.
Apart from MG-branded cars, the facility will also be producing ROEWE-branded passenger vehicles. ROEWE is a vehicle marquee created by SAIC Motor in 2006 to replace the Rover brand name, which it was unable to purchase the rights of from British carmaker MG Rover. ROEWE is one of a handful of domestic luxury car brands available in China.
The state-owned automotive company is one of the oldest automakers in China, with a number of foreign car making joint ventures. Apart from owning the popular British car brand MG, the company also standing partnerships with Volkswagen and General Motors.
SAIC hopes that the facility in Ningde will further promote the development of a robust industrial chain for new energy vehicles. The company also stated that the facility should help Fujian become one of the major hubs for the production of new energy vehicles in East China's coastal area.
