Mar. 2 (NBD) -- The fast-growing new-energy vehicle (NEV) market is holding strong appeal for investors. 

In an announcement Wednesday, Camel Group Co., Ltd. ("Camel"), a Chinese high-tech enterprise specialized in the R&D, production, sales and recycling of advanced lead acid batteries, announced the establishment of a joint venture with Croatian electric supercar manufacturer Rimac Automobili ("Rimac"). 

Based in Croatia's capital Zagreb, Rimac principally engages in the design and development of high-performance electric supercars, and its core members of the technical team mainly come from big names like Ferrari and Tesla.

Meanwhile, under the terms of an agreement with the management committee of Xiangyang Hi-Tech Industry Development Zone of central China's Hubei province on the same day, Camel and Rimac will invest 1 billion yuan (157.9 million U.S. dollars) to construct a project with a focus on the production of electric motors, electronic control systems, and BMSs for NEVs, according to the announcement.  

It remains unknown whether the joint venture is the main body of the new investment. 

The new project is scheduled to operate at full steam within five years, with a designed annual production capacity of 300,000 units of electric motors and electronic control systems for NEVs. By then, it would be able to generate 3 billion yuan (473.7 million U.S. dollars) in output value yearly.

Construction of the new project's first phase with an initial capacity of 50,000 units will commence this year at a cost of 200 million yuan (31.6 million U.S. dollars). This coincides with the joint venture's investment plan for 2018.  

Local authorities of Hubei's Xiangyang will provide 75 million yuan (11.8 million U.S. dollars) in financial incentives for the first-phase project construction, in addition to policy support in talent introduction and land for project use. 

Despite reduced subsidies, the NEV market has great potentials.

Data from the China Association of Automotive Manufacturers showed China produced 794,000 NEVs and sold 777,000 NEVs last year, representing a year-on-year increase of 53.8 percent and 53.3 percent.  

A few days before Camel's announcement, Zhejiang Geely Holding Group Co. announced its acquisition of a 9.69 percent stake in German carmaker Daimler AG. The company's billionaire founder Li Shufu expressed strong interest in Daimler's expertise in electric mobility, saying Geely is pleased to accompany Daimler on its way to becoming the world's leading electro-mobility provider. 

Chinese SUV and pickup manufacturer Great Wall Motor Company Limited has also signed a letter of intent with BMW in Beijing, according to which they will work together to develop NEVs and future-oriented technologies.  

Email: lansuying@nbd.com.cn