The Chinese electric car segment received a boost as Singulato is believed to have raised $600 million in its second round funding.

China is giving a big push to the development of environment-friendly electric cars. According to Reuters, Beijing-based Singulato Motors is likely to make an announcement this week about its latest fundraising.

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The Chinese electric car company is planning to use the fund to upgrade its technology and to build a cutting-edge electric vehicle plant in Tongling. The factory is expected to be built by 2020, with an annual capacity of 200,000 cars.

Shen Haiyin, the co-founder and CEO of Singulato, said that the company has raised nearly $700 million in total funding. He added that a major portion of these funds came from an investment fund operated by the municipal government of Tongling City.

Ni Duping, the mayor of Tongling City, said that the town's investment in the Chinese electric car company is part of its initiative to promote new energy vehicles.

China is prioritizing the electric car segment as it offers low entry barrier. Shen said, "We're targeting our EVs at young city dwellers in Beijing, Shanghai, Shenzhen and other large cities where buying a gasoline car is becoming more difficult."

The companies in the electric vehicle segment have been provided with several incentives by the Chinese government. These incentives come in the form of favorable policies and subsidies.

Meanwhile, Singulato currently has 140 employees. It plans to launch its first product, a crossover sport utility vehicle, as early as 2018.

TagsSingulato, Electric Car, Tongling City