Qingdao will have a new energy commercial vehicle production program settled in its new auto city in Jimo, a county-level city in eastern Qingdao.

The program focuses on production of electrical trucks and inter-city cargo vehicles according to an agreement signed between the Qingdao government and the FAW Group on August 30.

Aiming at a 10 billion yuan output value, the program plans to reach a capacity of 40,000 vehicles in its first stage, and 100,000 in the second stage.

The new program will be part of the extensive auto industrial chain in the auto city that covers passenger vehicle, commercial vehicle, refitted vehicle, chassis system and auto parts。

In total, 120 auto programs have settled in the auto city, involving an aggregated investment of 50 billion yuan ($7.64 billion).