Qiantu Motor, one of China's biggest local automotive design firms, is all set to enter into the business of manufacturing electric cars.

The automobile company will be launching its first electric sports car Qiantu K50 at an estimated price of 700,000 Yuan by the end of next year.

Qiantu is currently setting up a plant in the eastern city of Suzhou solely for the purpose of manufacturing electric cars, company's Chairman Lu Qun said in a recent interview. The company would be building its electric cars using a carbon-fiber body and an aluminum frame predominantly used in business jets and mega-yachts.

Like Us on Facebook

Its debut car K50 will be directly competing with Tesla and a host of other Chinese electric auto companies. However, Qiantu Motor is likely to face more fierce competition from Tesla Motors than any other company given that the American electric car giant has achieved stupendous success in Chinese market over the last year

"We are learning from Tesla as well as all the other electric carmakers," Qun told Bloomberg. "We are aiming at building high-performance cars, and there's no other option but to build our own factory, because there isn't a plant in China that has a carbon-fiber molding workshop."

Analysts say Qiantu's success will eventually depend on its ability to build a good reputation among consumers, which warrants a great deal of patience as well as working capital.

Other aspirants in the lucrative electric car market include Chehejia Technology and NextEV Inc. Traditional auto companies like Chongqing Changan Automobile Co have also entered the fray. The company's president Zhu Huarong recently announced that it will be investing 18 billion yuan to add 34 new electric vehicle models by 2025.

TagsQiantu Motor, Qiantu K50, Tesla, tesla motors, K50