Japan-based Hitachi Automotive Motor Systems will establish a production base in Zengcheng district, Guangzhou, it was announced on Oct 17, further boosting the Guangdong province capital's auto credentials.

The project will carry out research and development for electric motors to be used in new-energy vehicles.

According to an agreement signed with the government, the new plant is scheduled to complete by June 2019 and come into operation by September 2020.

By then, Hitachi Automotive Motor Systems will provide high-quality electric motors to the Chinese new-energy vehicle industry as well as contribute towards energy conservation and environmental protection in the industry.

According to spokesperson of Zengcheng district, it is attaching great importance to the development of the auto industry, wanting it to become a pillar industry.

The district is home to two auto manufacturers and more than 150 spare parts companies, and boasts a whole auto industrial chain featuring a research and development center and automotive technology and research center.

In 2016, the number of automobiles produced in Zengcheng reached more than 400,000 units with an annual value of 73.5 billion yuan ($11.1 billion), accounting for 17 percent of Guangzhou's total number and marking a 16 percent increase year-on-year.

Hitachi Automotive Motor Systems signs a cooperation agreement with Zengcheng district in Guangzhou on Oct 17.[Photo/zcrb.zcwin.com]