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Lifan Group recently signed a strategic cooperation agreement with Sichuan Energy Investment Group, Chongqing Daily reported.

Chongqing will share rental services in new energy automobiles with Sichuan provinces by the end of this year.

Pand Auto, a car rental subsidiary of Lifan, will operate in various cities in Sichuan provinces.

Sichuan and Chongqing will accelerate cooperation and increase integration and exchanges in new energy projects, finance and trade.

Gao Yu, vice CEO of Lifang, noted that the companies will firstly launch new energy car rental services in Chengdu, Suining, Zigong, Mianyang and Luzhou.

In the first quarter of 2016, 2000 new energy autos will be put into operation and the number available in each city is expected eventually to reach 1,000.

"The cooperation can save costs and protect the environment while increasing cooperation between Chengdu and Chongqing," said Gao.

As the first new energy rental automobile service provider, Pand Auto gained increasing popularity among white collar workers and students. So far, there are over 100 new energy autos available for rent in Chongqing, with the rental rate being over 60 percent.

Liangjiang New Area will use the industry fund to encourage and support companies in developing electric new energy vehicles.

New Energy Vehicles Industry Development Company and Chongqing New Energy Vehicles Leasing Company have been working on the manufacture and operation of new energy automobiles since their establishment in September, 2015.

By November 2015, Chongqing had launched 3,025 new energy autos, including1,208 passenger autos and 1,063 logistic cars. It also has four comprehensive charging stations for new energy automobile users.

Tang Zongwei, deputy director of the Chongqing Liangjiang New Area Committee, said that the area will develop new energy and smart automobiles in the future. Annual production is expected to surpass 500,000 with new energy vehicles accounting for 18 percent.