FAW to invest $684m in new-energy technology plants

China FAW Group Corporation, one of the country's largest automobile makers, plans to invest 4.35 billion yuan ($683.8 million) to improve its new-energy technology, the company announced.

Almost all the investment will be used to build its new-energy plants, including 2.04 billion yuan for equipment and installation, 940 million yuan for construction, and 1.18 billion yuan for tooling and other expenses.

With the new plants, FAW will be able to produce car models with more fashionable styles, advanced configurations and more power, while taking full advantage of government incentives for new-energy cars, the company said.

Despite the slowdown in the domestic auto market, the carmakers' capacity to produce is increasing, putting pressure on sales. FAW sold 91,700 cars in the first six months this year, a 35.5 percent decrease compared with last year.

The construction of the plants will take 22 months, with an expected yield of 13.32 percent and payback period of 7.18 years, according to the project's feasibility report.