Chinese automaker Chongqing Changan Automobile has agreed a financial deal with Ping An Bank and China Minsheng Banking to fund its new energy vehicle production plans.

The company plans to spend CNY100bn (US$15.1bn) by 2025 on the production of new energy vehicles, mainly electric and hybrid vehicles.

Earlier this year Chongqing Changan unveiled plans to launch 21 electric and 12 plug in hybrid vehicle models by 2025 and cease sales of conventional vehicles altogether.

The automaker confirmed plans to set up an investment company with the two banks to fund the project, covering R&D costs, battery production, building vehicle charging facilities and vehicle production.

The investment company will also fund the development of smart car technology, ride sharing and financing.

The company sold close to 35,000 new energy vehicles in the first nine months of 2017, according to local reports, out of total sales of 2,058,200 units in the same period including its joint ventures with Ford.

The Chinese government recently announced ambitious targets for new energy vehicle sales in the country, including sales of more than 2m units by 2020 and 20% of total sales by 2025.

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