Chongqing Hengtong Car Company, formerly known as the Chongqing Bus Factory, plans to build a new factory to be engaged in producing environmentally-friendly motorcycles.

Hengtong's new factory will cover an area of 400 mu and will involve RMB500 million in investment. The factory will allocate RMB80 million to make a new type of gas-fuelled motorcycle which has better mileage.

Hengtong is the biggest car manufacturer in the western part of China. The company says by 2008, Hengtong will be built into the biggest manufacturing base for environmental-protection cars and motorcycles in China.