Geely has formed a joint venture with Xindayang for the production of electric cars. The Zhejiang-based automaker has invested CNY1bn (US$161m) in the JV.

Citing Time Weekly, WantChinaTimes said the companies aim to manufacture 50,000-100,000 electric vehicles in 2015.

Geely chairman Li Shufu said, "In order to remedy air pollution and traffic jams, light, smart, and energy-saving micro electric cars will emerge as a mainstream transportation instrument in cities."

Meanwhile, Geely plans to invest at least $200m in the next five years in the Emerald Automotive electric car line.

The company also plans to develop five new hybrid cars in the next five years.