SAIC Motor has completed a private share placement that raised CNY10bn (US$1.5bn) it develop own-brand and new energy vehicles.

According to Bloomberg News, citing a statement to the city’s stock exchange, Shanghai Automotive Industry Corp, the company’s parent, agreed to buy about 10% of the 720.98m shares in the placement for about CNY1bn.

SAIC also plans to expand a technology centre to compete against foreign rivals. The Chinese government is encouraging domestic automakers to develop their own brands and alternative-energy technology.