On March 2, 2010, CSR Zhuzhou Electric Locomotive Research Institute Co., Ltd. CSR Zhuzhou Research Institute under China South Locomotive and Rolling Stock Corporation Limited SH 601766; HK 01766 and Liaoning SG Automotive Group SG Automotive Group, SH 600303 entered into a cooperation framework agreement in Zhuzhou, Hunan, under which the two parties will integrate quality resources and jointly establish Hunan CSR Huanghai Electric Bus Co., Ltd., enhance the new energy automobile industry and build China’s largest new energy bus industry base. 

According to the agreement, both parties will increase investments in Hunan CSR Times Electric Co., Ltd. “CSR Times Electric” controlled by CSR Zhuzhou Research Institute and Changzhou Huanghai Automobile Co., Ltd. “Changzhou Huanghai” controlled by SG Automotive Group to build an energy-conserving and new energy bus and passenger vehicle manufacturing base and accomplish deep cooperation in fund and technology. Hunan CSR Huanghai Electric Bus Co., Ltd. CSR Huanghai Electric, founded in Zhuzhou with a joint investment, will become the base of both parties for the R & D and industrialization of new energy vehicles. 

According to the source, after founding, CSR Huanghai Electric Bus will, on the basis of Phase I of the automotive industrialization base of CSR Times Electric, accelerate the development of Phase II to develop an industrial scale of an annual output of over 10,000 new energy buses and an annual output of 20,000 sets of key parts like electric motor drive system. Meanwhile, SG Automotive Group will also inject the existing pickup and axle manufacturing technologies into CSR Huanghai Electric. 

CSR Times Electric is an enterprise that uses CSR’s core technology in the field of rail transit and engages in the R & D of key electric vehicle technologies earliest as well as China’s first general automobile enterprise specialized in the R & D, manufacture, testing and demonstrative operation of electric vehicle systems, key parts and vehicles. In 2007, it acquired China’s first qualification for new vehicle manufacturing. The company boasts advantages in independent R & D, continuous innovation and professional manufacture, has over 50 patents for a full set of core electric vehicle technologies from key parts like drive motor system to powertrain system and vehicle, independently developed several hybrid models, and has sold over 500 hybrid public buses with full independent intellectual property rights. Besides, key parts of electric vehicles such as large-power asynchronous motor drive system, medium & large-power permanent magnetic electric drive system, battery management system and charger are mainly supplied to markets such as the Beijing Olympics, Shanghai World Expo and State Grid. CSR Times Electric is currently a major undertaker of key energy conservation and new energy vehicle projects under National 863 Program, the lead unit of major electric vehicle projects under the “Eleventh Five-Year Plan” of Hunan, as well as one of the members of the Electric Vehicle Sub-committee of National Automotive Standardization Technical Committee. 

Huanghai Bus, China’s earliest bus manufacturing base and urban bus flagship, has been in a leading role in the industry for years. In recent years, the company has been committed to studying the subjects of new energy buses suiting Chinese national conditions. Taking the actual needs of terminal users as the design orientation is the persistent manufacturing concept of Huanghai Bus, which accumulated mass first-hand data about new energy buses and explored a set of new energy bus solutions applicable to Chinese large and middle-sized cities through constant practice and exploration. In 2009, Huanghai Bus was ranked among the first group of new energy bus manufacturers accredited by the Ministry of Industry and Information Technology, showed outstanding fuel conservation performance and stability in the commissioning of its new energy products in cities like Kunming and Nanchang, and acquired an order of 100 new energy buses from Changzhou Public Transportation Group. 

Ding Rongjun, executive director and general manager of CSR Zhuzhou Research Institute, commented the cooperation as a Win-win Combination aimed at mutual benefit and win-win. CSR Zhuzhou Research Institute will enhance new energy bus manufacture by the advantages and experience of SG Automotive Group in such aspects vehicle manufacturing technology and market operation to truly accomplish the development of both system component manufacture and vehicle manufacture. 

Li Jindian, chairman of SG Automotive Group, said, “The Win-win Combination and mutual supplementing of SG Automotive Group and CSR Zhuzhou Research Institute further accomplishes the synchronous development of traditional buses and new energy buses, builds the most competitive Chinese new energy bus manufacturing base and strives to be the navigator of the new energy bus industry.” 

According to the source, as world energy crisis and environmental problems becomes increasingly prominent, the auto industry is facing severe challenges, and various energy conservation and new energy vehicles have become the focus of global research and development. New energy electric vehicles represent the current and future scientific and technological development orientation of the industry. The Chinese government attaches great importance to the research and development of new energy vehicles, placed the work as the priority of 863 Program and released several support policies. The cooperation between CSR Zhuzhou Research Institute and SG Automotive Group will further optimize the resource allocation of domestic electric vehicles, accomplish the organic integration of technology, market with supply chain and promote the fast cultivation of “flagship” enterprises in the China’s electric vehicle industry in the hope of holding a position in future global competition.