SAIC Motor announces new-energy vehicle brand

China's biggest automaker SAIC Motor will launch a new-energy vehicle brand, known as Project L inside the group.

The project will adopt a separate operating model from that of the state-owned carmaker, and SAIC will establish a new company to lead the brand.

The new entity will be light on assets, but emphasize research, development and market-oriented resource allocation. It is expected to raise capital from investors of both home and abroad. 

In terms of products, the brand will develop high-end intelligent vehicles covering various market segments.

More detailed information on the project will be released in the future.

Competition in China's electric vehicle market is intensifying as more global automakers and local startups enter the arena with new models.

Other large traditional automakers have also established separate new-energy brands.

Dongfeng Motor has already launched its own high-end new-energy brand, Voyah. BAIC has its own spin-off brand known as Arcfox, while Geely has an electric vehicle brand known as Geometry.

The country's sales of new-energy vehicles surged 67.7 percent year on year to 138,000 units in September, the third consecutive month of gains. Sales of electric vehicles rose 71.5 percent year on year to 112,000 units last month, according to data from China Association of Automobile Manufacturers.