Hefei Changan Automobile Co in Nangang Science Park, Hefei National High-tech Industry Development Zone [Photo from WeChat account hefeigaoxinfabu]

The second phase of Chinese automaker Hefei Changan Automobile Co's construction project will go into motion in Nangang Science Park, Hefei National High-tech Industry Development Zone by the end of July.

With a total investment of 3 billion yuan ($436.05 million), the second phase is expected to produce 240,000 vehicles a year.

Together with the first phase, the project will bump Hefei Changan's annual production up to 400,000 to 500,000 vehicles, making it most important production base outside of Chongqing.

According to Xi Qingzhi, senior manager of the company, Changan is striving to develop smart travel technology and has established a research institute in Hefei.

Also, the firm recently announced its strategy for producing new energy vehicles. Changan will stop selling cars powered by traditional fuels by 2025.

"Nangang has lent us a lot of support since we set up operations here," said Xi. In addition to favorable policies, the science park has provided temporary parking lots and public rental housing for the company. To ensure logistics convenience, Nangang also widened roads around the car factory.