Dongfeng Motor Corporation launched the construction of a new energy plant in Wuhan Economic and Technological Development Zone on Sept 29, with an investment of 2.4 billion yuan($392.2 million)in the first phase of the project.

The plant has a planning capacity of 160,000 vehicles, and it is expected to be put into operation by the end of next year.

In 2010, Dongfeng launched a new energy strategic plan requiring that the company will invest 3 billion yuan($490.2 million) in product technology development and the construction of energy-saving and new energy vehicles.

The same year, the company established a new energy vehicle strategy steering committee and a business platform.

Dongfeng's General Manager, Zhu Fushou, told those attending the ceremony marking the start of construction that the new energy car plant will strengthen the company's capacity for innovation and development and it will also help promote the sector of new energy vehicles.

China's Ministry of Science and Technology and Ministry of Industry and Information Technology have supported research and development in the field of new energy vehicles since 2009.

The authorities have implemented subsidies concerning new energy vehicles, sending a positive signal to the market.

Dongfeng plans to produce 100,000 medium- and heavy-duty hybrid vehicles per year by 2015 and, by 2020, the company expects its energy-saving and new energy vehicles will be as competitive as conventional cars and maintain an advanced technology.

Edited by Niva Whyman and Le Qin