Zoyte Auto to develop alternative-fuel vehicles

Chinese sport utility vehicle (SUV) manufacturer Zotye Auto intends to raise about 720 million yuan (US$105.46 million) by offering a stake in the company to local investors, as it looks to develop its own-brand of alternative-fuel vehicles. Zotye has signed strategic co-operation agreements with 11 Chinese investors, including JF Asset Management, Zhejiang Haiyue and Xinghe (Group), to raise the required funds. Wu Jianzhong, president of Zotye Auto, said that, “With the support of private investors, Zotye is extremely confident in exploring ways to develop [a] more cost efficient powerhouse for electric vehicles”, adding that the company will mass-produce its pure-electric vehicles in China by the end of this year. Zotye launched its first pure-electric model in the Chinese market last month, with a driving range of more than 400 kilometers on a single charge and a maximum speed of about 121 km per hour. The model uses lithium-ion batteries that can be recharged in six to eight hours using a standard 220v socket, or in about two hours at a high-power recharging point. The automaker aims to manufacture and sell 500,000 vehicles a year by 2012, doubling this by 2017. It also intends to launch its electric vehicles in Europe and the United States over the next few years. (August 5, 2009)