Global automakers join trend to deploy mobility service in China

Shanghai (Gasgoo)- Mobility service, as a burgeoning industry that provides ground for companies to deploy EVs and test autonomous technologies, is attracting more and more traditional automakers to get involved . Aside from such domestic automakers as Geely, SAIC Motor and FAW Group who have already launched their own ride-hailing service platform, many prominent global car makers are also flocking into China, the world's largest automobile market, to develop mobility service business along with their partners there.

Gasgoo hereby summarizes the major events about global automakers deploying mobility services in China this year. Basically, most of them chose to undertake the cause in the form of building joint ventures (JVs) with their existing partners in China. 

Audi, FAW Group sign MoU for a mobility service company

On March 7, FAW Group, Audi AG, Volkswagen AG, Volkswagen Group China and FAW-Volkswagen jointly signed two memoranda of understanding for the creation of two new companies for sales as well as mobility and digital services. With these measures, the partners will fundamentally restructure their businesses in China.

The to-be-built FAW-Audi Mobility Service (China) Co., Ltd. will be co-invested by FAW, Audi, FAW-Volkswagen and Volkswagen China. The new company will focus on emerging digitalized sharing and mobility field in order to provide personalized high-end mobility experience for Chinese customers. What's more, the new mobility company will take over Audi on demand +, a premium mobility service launched in Beijing in September, 2017.

It is known that both Chinese and German shareholders are adding investment in FAW-Volkswagen because they believed that China holds great potential in premium vehicle market. In 2018, FAW-Volkswagen Changchun Qplant and Foshan base, which will manufacture Audi models, will be finished construction and begin production. By 2020, five new NEV models under Audi brand will be introduced into the Chinese market. At the same time, all parties will jointly invest more to start Audi's brand upscale plan, and collect more customers' feedbacks from the Chinese market. 

Volkswagen in talks to manage Didi fleet, co-develop autonomous cars

It was reported in May that Volkswagen AG was in talks to form a joint venture with China's Didi Chuxing to manage part of the ride-hailing service platform's car fleet and help develop "purpose-built" vehicles for Didi's services.

A senior executive at the carmaker revealed that under the partnership, Volkswagen will initially manage a fleet of about 100,000 new vehicles for Didi, among which two thirds will be Volkswagen Group's cars.

The automaker would also jointly buy new cars with Didi to help the Chinese partner expand its fleet. The two companies eventually plan to co-develop and use autonomous driving cars, he added.

The executive did not give more details of the deal but disclosed that Volkswagen will get a slice of the revenue once the venture's operation starts.

In late April, Volkswagen joined the "Torrent alliance" formed by Didi with 31 automakers and auto parts supplies. The ride-hailing company has said it formed the alliance to collaborate on, among other things, eventually developing cars purpose-built for its services.

Ford Smart Mobility, Zotye Auto sign contract for smart mobility JV

On September 27, Ford Smart Mobility, a wholly-owned subsidiary of Ford Motor, and Zotye Automobile Co., Ltd (Zotye Auto) signed the final contract for a 50-50 joint venture, which will work on providing tailored intelligent EV mobility solutions for ride-hailing service providers and drivers. 

The joint venture, dubbed Zotye-Ford Smart Mobility Joint Venture, still awaits governmental approval. It is designed to provide Chinese ride-hailing operators and drivers with one-stop services, including pure electric vehicle rental, fleet management as well as intelligent connectivity and on-board infotainment services. Involving a registered capital of $20 million, the new joint venture will be located in Hangzhou, capital of Zhejiang province.

Under the joint venture contract, the Zotye Z500EV pure electric sedan will be first leased to operators and drivers for ride-hailing services. Boasting a spacious seating room inside, the Zotye Z500EV features a combined range up to 330km. The EV model is equipped with advanced in-vehicle infotainment and intelligent connectivity systems in order to enhance users' driving experience.   

Daimler Mobility Services, Geely Group Company announce premium ride-hailing JV in China

Daimler Mobility Services GmbH and Geely Group Company, Zhejiang Geely Holding Group's new business subsidiary, announced on October 24 that they will build a joint venture in China to provide premium ride-hailing services, according to Geely's official WeChat account.

The 50-50 JV will be headquartered in Hangzhou, Zhejiang Province. The JV will work on providing ride-hailing services in some Chinese cities using premium cars, including but not limited to Mercedes-Benz branded vehicles. At the initial stage, the fleet will include the Mercedes-Benz S-Class, E-Class and V-Class and Maybach vehicles and could deploy premium electric vehicles from the Geely Group later.

The financial terms and investment plans of the JV have not been exposed yet. The establishment and operation of the JV should be approved by the merger control authorities. 

Geely Group Company and Daimler Mobility Services will be equally represented on the board of the new JV. In the future, both parties will jointly develop the software infrastructure required for extending businesses in China. 

BMW given license to launch ride-hailing service in China

BMW Group became the first international carmaker that nabbed a license to deploy ride-hailing service in China, confirmed by BMW China's public relation department in late November. It is a prelude for the Germany premium carmaker to launch ride-hailing services in Chengdu from December 14. 

BMW Mobility Service Co.,Ltd, a wholly-owned subsidiary of the BMW Group founded in April, was given the ride-hailing license from the authority of Chengdu, capital of Sichuan province, BMW said.

It is reported that the automaker will deploy 200 BMW Series 5 sedans in Chengdu during the early days after the mobility service subsidiary starts operation. Those vehicles, including fueling-burning cars and PHEVs, will be allocated to exclusive drivers as part of BMW's efforts to offer luxury ride-hailing service.