(Yicai) Oct. 30 -- Shares of IAT Automobile Technology rose after the Chinese car designer said it has received an electric vehicle parts and components order worth about CNY5.4 billion (USD736 million) from Yamato Industry, a Japanese supplier of synthetic resin auto parts and components.

IAT [SHE: 300825] closed up 3.8 percent at CNY16.28 (USD2.22) in Shenzhen today. Yamato's shares [TYO: 7886] rose 1.7 percent to JPY1,026 (USD6.86).

Yamato will purchase 14,000 sets of electric system kits for Isuzu-branded vehicles priced at CNY155,000 (USD21,1950) per set and 21,000 sets of electric system kits for the Mitsubishi Canter, a light-duty commercial vehicle, priced at CNY153,000 per set from next year to 2026, the Beijing-based company announced on Oct. 27.

IAT's Japanese subsidiary owns 33 percent of Yamato, where Director and Deputy General Manager Liu Jian is also a director, making the deal a related-party transaction, the firm added.

IAT did not disclosed any further details about the order. But on Aug. 31, the company announced it had joined hands with Yamato to convert fuel-powered trucks to electric ones in Japan and on the provision of relevant parts and components.

According to the letter of intent signed then, IAT would select, design, and develop parts needed for vehicle modifications and provide technical support, while Yamato would select Japanese logistics companies as target customers to offer them conversion services for fuel-powered commercial vehicles.

Under the deal, Yamato aims to convert 5,000 vehicles in the first year and 10,000 in the second year, before gradually increasing that to 20,000 a year, IAT noted.

IAT also counts international auto giants, such as Volkswagen, Mercedes-Benz, Honda, and Nissan, among its clients.

Editor: Futura Costaglione