China's FAW Group plans to invest $1.5 billion developing clean energy vehicles in the next five years, a report said Tuesday, as automakers seek to cash in on the burgeoning "green" car market.

FAW made the announcement at the Shanghai auto show, which opened to the media on Tuesday with carmakers from around the world showcasing a range of new models in the hope of finding Chinese buyers.

FAW, China's second-largest automaker by sales after SAIC Motor Corp, plans to spend 9.8 billion yuan developing 16 "new energy" passenger and commercial models by 2015, chairman Xu Jianyi was quoted by Dow Jones Newswires saying.

The automaker also aims to nearly double its annual sales to five million units by 2015.

Guangzhou Automobile Group meanwhile also wants to get a foot in the green car market, with plans to work with its joint-venture partner Honda Group Co to develop electric cars in China.

Guangzhou Auto wants to start producing such cars next year and aims to sell around 200,000 new-energy units annually in 2015.

China's leaders are encouraging local companies to produce and market electric cars in the country, which overtook the United States in 2009 to become the world's largest auto market.

About 2,000 car and parts makers from 20 countries are participating in the Shanghai auto show, showcasing 75 new car models, 19 of them making their world premieres. A total of 1,100 vehicles will be on display.

earlier related report
SAIC eyes expansion in China and overseas
Shanghai April 19, 2011 - China's largest automaker SAIC Group said Tuesday it aims to nearly double its annual sales to over six million units by 2015, predicting that by then its own brands would rival Buick and Volkswagen. SAIC Motor Corporation President Chen Hong said the carmaker was also considering other opportunities to work overseas with General Motors, its partner in China, with whom it operates a small car and van business in India. "We are considering the model of the tie-up with GM in India, taking advantage of its facilities and distribution channels overseas. We are studying the model together with GM," Chen told reporters at the Shanghai auto show. Chen said he expected that any future ventures between the two would produce both GM and SAIC brands. SAIC Motor is the listed unit of state-owned Shanghai Automotive Industry Corporation and has joint ventures with both General Motors and Volkswagen, the two market-leading brands in China. SAIC and its American and German partners sold 3.58 million units in 2010, up 31.5 percent from the previous year. Chen said SAIC would sell more than six million vehicles per year by 2015 with 800,000 sold to overseas markets. "In the next five years, we will continue to see double-digit growth in China's auto market," he said. SAIC Motor and GM formed a 50-50 joint venture last year aimed at expanding in emerging Asian markets, focusing initially on selling small cars and mini-commercial vehicles in India. The Indian joint venture's sales totalled around 110,000 units last year and the companies expect to see sales rise to 300,000 units by 2015. Tim Lee, president of GM International Operations, told AFP that he and GM CEO Dan Akerson meet Chen twice a year to discuss strategy and were do to do so again at the start of the summer. "For both parents to consider other options and alternatives is only reasonable. When we have something to talk about in those areas, we will," Lee said. SAIC is also striving to move to the more profitable upscale segment in the nation's auto market, which is dominated by foreign brands. Chen said he hoped that in the next few years his firm's brands would rival those of international players, including its partners. "Our brands such as Roewe and MG will have a reputation and fame similar to the international brands like Buick and Volkswagen," Chen said. SAIC's joint venture with GM and China's Wuling Motors have teamed up to launch the first sedan of their Baojun brand at the auto show.