SAIC Motor Corp Ltd<600104>, the largest car maker in mainland China, is expected to start producing new-energy vehicles in 2010, the official Xinhua News Agency reported today.

The auto maker has completed its new-energy industrial chain and its core auto parts have successfully broken the international hybrid vehicle barriers, said a company spokesman.

SAIC earlier said it planned to invest more than RMB 12 billion in the next three to five years to develop hybrid vehicles and related auto parts. The investment will cover 41 key projects related to new-energy and eco-friendly vehicles.

The spokesman said the auto maker may purchase batteries from China's BYD Co Ltd<1211> and from overseas companies.

SAIC next year will launch the Roewe 750 hybrid sedan, a car that could cut fuel costs by 20%. The Roewe 550 mid-class sedan, another plug-in hybrid model, will be unveiled and commercialized in 2012. The model will improve fuel efficiency by an estimated 50%.

In January, SAIC and its parent, Shanghai Automotive Industry Corp, set up a joint venture called Jie Neng Automobile to develop hybrid vehicles.