Posted on 20 Apr 2015
In a filing with the stock exchange, DRB-Hicom said the total investment in the joint venture entity will increase from RMB2.7 billion (RM1.61 billion) during the initial stage to RMB10 billion (RM5.97 billion) for the second stage.
Proton, Lotus and Goldstar will each own a 40%, 10% and 50% in the joint venture company.
DRB-Hicom said it will allow the group to further enhance the sales of Lotus branded vehicles in China by venturing into the production of Lotus branded passenger cars, related engines, parts and components and accessories.
"DRB-Hicom group can continue to capitalise on the expected continuous growth in the China premium vehicle market. As such, this is expected to be beneficial to the group in the future," it added.
Besides cars, the joint venture will also involve the manufacture and sale of engines, parts and components, accessories as well as to provide after-sales services.
