SAIC SAIC Motor Corp, China's largest auto group, Wednesday said it has raised 10 billion yuan (US$1.5 billion) through a private placement to fund development of self-branded and new-energy cars.

Shanghai Automotive Industry Corp, the company's parent, has agreed to invest about 1 billion yuan for 10 percent of the 7.21 billion additional shares, which were priced at 13.87 yuan apiece. Other investors include steel mill Baosteel Group and garment maker Youngor Group, SAIC said in a statement filed to the Shanghai Stock Exchange.

SAIC, the Chinese partner of General Motors and Volkswagen, earlier said it would spend 5.5 billion yuan to add capacity and roll out eight models of its two self-branded cars - MG and Roewe - as the car maker plans to double sales of its own-branded vehicles to 180,000 units this year.

General Motors has signed a memorandum of understanding with SAIC to negotiate selling MG cars in the United Kingdom through GM's sales network, Reuters reported on Tuesday, citing Kevin Wale, president and managing director for GM's China operations. SAIC plans to start making MG sedans in the UK by the end of this year and sell them across the European Union, its chairman Hu Maoyuan told Reuters.

SAIC has set a target to sell 3 million units this year, up 50 percent from a year ago.