Chinese car maker BYD Auto Co., Ltd. has agreed to establish a strategic partnership with Beijing-based Chinese investment firm CSC Group to launch a RMB1.5 billion (US$241 million) fund to invest in the new energy automobile sector in China, according to a joint announcement.
The fund will invest in projects to build electric car recharge and service stations, as well as developing new energy cars.
The two parties will establish a RMB1 billion (US$160 million) industry investment vehicle in Qianhai, Shenzhen, and a RMB500 billion (US$80.3 million) new energy automobile investment fund in Hong Kong.
The strategic partnership comes after BYD’s plan to establish a financing arm last month, aimed at providing auto loans to Chinese consumers in order to promote sales of BYD’s new energy cars such as its E6 models.
Founded in 2000, Beijing-based CSC Group is a venture capital fund managing RMB funds totaling RMB60 billion (US$9.64 billion).