China's leading electric vehicle manufacturer BYD has said it plans to build a new electric bus plant in Xi'an in the country's Shaanxi province.

This is part of a package of three individual investments in the Xi'an Hi-tech Industrial Development Zone by BYD amounting to CNY5bn (US$726m) in total, which also includes a monorail manufacturing operations and a high-end smart terminal project.

The Shenzhen, Guangdong province-based manufacturer will invest CNY2bn in a new Xi'an electric bus plant with a production capacity of 5,000 units per year with a sales value of CNY8bn.

BYD makes a broad range of electric buses, from 23foot medium-duty units to 60-foot articulated city buses. It also makes electric taxis which are mainly sold in China.

The company has signed a series of new sales deals both domestically and overseas in recent months, including with South Korea's Jeju municipality and South Africa's capital city Cape Town.

The City of London took delivery of 51 BYD electric buses assembled in the UK by body-builder Alexander Dennis in September.

Last month the company alsoannounced plans to invest EUR20m in a bus plant in Hungary.