* Expects sales to grow 20 pct this year
* Eyes a Shenzhen IPO in 2011
* To sell 5 million units in 2013
By Michael Wei and Kirby Chien
BEIJING, Sept 3 (Reuters) - Chinese electric bicycle maker Jiangsu Xinri E-Vehicle Co Ltd expects its sales to grow nearly 20 percent this year, and is aiming for a public offering in 2011.
Although consumer spending has slowed, Xinri's sales would likely rise to 1.9 million units this year from 1.6 million in 2008, because of an increase in popularity of the electric vehicles, its deputy general manager, Gavin Hu, told Reuters.
"The electric bicycle, which is energy-efficient, environmentally friendly and economical, has been gaining popularity everywhere, especially in China," Hu said in an interview.
Xinri, which posted sales of 3 billion yuan ($439.2 million) in 2008, also exports to Canada, Japan and other countries in Asia and Europe.
In order to meet a growing demand for the relatively new vehicle, Xinri, which purchases batteries from BYD Co Ltd <1211.HK>, is planning to build two more plants to further boost production.
"The target we set ourselves is to sell 5 million units in 2013," Hu said.
The company, founded in 1999, now has more than 3,000 employees and operates two plants, in Wuxi and Tianjin, with over 5,000 shops across the country.
More than 1,000 companies compete in China's highly fragmented electric bicycle industry. Total sales of the electric vehicles rose to 21 million in China last year, according to data from an industry group, China Bicycle Association.
The Wuxi, Jiangsu-based firm has met representatives from more than 40 investment banks to discuss its potential initial public offering (IPO) in the Small and Medium Enterprise Board in Shenzhen, Hu said.
"There is a higher premium in the SME board as people generally consider that smaller firms enjoy stronger growth potential," he said.
Hu declined to give a figure on the size of the share offering, only saying it is still under negotiation.
"If there is a need, we will consider an IPO on a large scale," he said. ($1=6.830 Yuan) (Reporting by Michael Wei and Kirby Chien; Editing by Ken Wills)
