Dongfeng Automobile Co. Ltd, a light commercial vehicle producer under Dongfeng Motor Corp, started construction of its new energy bus project in Xiangfan city, in central China's Hubei province recently, according to local media reports. As one of Dongfeng Motor's 16 new-energy vehicle projects, the production base in Xiangfan will cost the automaker a total investment of 650 million yuan ($95.7), It will be put into operation in 2012.

The new production base is expected to produce 2,000 vehicles and 5,000 chassis with alternative power in the first half of 2011. By 2012, Dongfeng Auto plans to increase the annual production and sales to 8,500 vehicles.

Dongfeng Auto started in 2005 developing all-electric vehicles and has so far made 12 models including an all-electric bus, truck, MPV, SUV, pickup and minivan.

In addition, Dongfeng Motor, China's third-largest automotive group, recently announced plans to invest 3 billion yuan ($442.9 million) in the next five years in energy-efficient and new energy vehicle related developments.

Dongfeng Motor targets to be capable of making 50,000 electric vehicles by 2015, with cumulative output of green vehicles reaching 800,000 units by 2020, the company's management said.