Chinese leasing firm Panda New Energy signs $12bn electric car deal

Chinese leasing firm, Panda New Energy, has signed a deal worth $12bn with a Chinese-owned Swedish vehicle company, the National Modern Energy Holdings (NMEH). The Swedish investing party, National Electric Vehicle Sweden (NEVS), will produce 150,000 electric vehicles for Panda based on Saab 9-3 sedan-platform by the end of 2020, say reports. In addition, tThe deal includes 100,000 electric vehicle products and services from companies associated with NEVS and its owner. As we have previously noted, China is forecast to become the world's largest electric car market this year, overtaking the US, with up to 250,000 sold there, overtaking the US. China's electric-car industry is developing rapidly, thanks to supportive government policies, including subsidies and tax cuts.

Beijing: A Chinese leasing firm has signed a deal worth $12 billion with a Chinese-owned Swedish vehicle company, the National Modern Energy Holdings (NMEH) said on Monday.

NMEH is jointly invested and founded by Chinese and Swedish companies. Its Swedish investing party, National Electric Vehicle Sweden (NEVS), will produce 150,000 electric vehicles to China's leasing company Panda New Energy based on Saab 9-3 sedan-platform by the end of 2020, Xinhua reported.

In addition, the deal also includes 100,000 electric vehicle products and services from companies associated to NEVS and its owner, according to the agreement.

Owned by Chinese investors, NEVS took over Swedish car manufacturer Saab's assets and technologies after its bankruptcy in 2012.

NMEH, located at Binhai New Area of China's Tianjin municipality, aims to produce blade and extended range electric vehicles with the support of NEVS, said Peng Jinchun, general manager of NMEH.