11 companies including FAW, Tencent, Alibaba set up RMB9.76 bln fund for NEV car-sharing business

Shanghai (Gasgoo)- Chongqing Changan Automobile Co., Ltd announced on March 22 that it has signed an agreement in Nanjing with ten companies including Suning Investment, FAW Group, Dongfeng Motor Corporation, Tencent and Alibaba, etc., to build a partnership enterprise involved a total subscribed capital of RMB9.76 billion.

According to the announcement, the amounts of capital subscribed by Tencent, Alibaba and other three investors total RMB2.25 billion. Meanwhile, the subscribed capital contribution for Suning, Changan Automobile, FAW Group and Dongfeng Motor amounts to RMB1.7 billion, RMB1.6billion, RMB1.6billion and RMB1.6 billion respectively. 

The partnership enterprise, dubbed Nanjing Lingxing Equity Investment Partnership Enterprise (Limited Partnership) for now, will invest in the NEV-focused car-sharing business, according to Changan Automobile. Besides, in the name of the partnership fund, a mobility service company will be jointly funded by three stated-owned automakers—FAW Group, Changan Automobile and Dongfeng Motor, joining hands with some leading Internet, finance and retail companies. 

The partnership is formed to build a “new intelligent mobility ecosystem” featuring connectivity and sharing and offer the public a more pleasant mobility lifestyle with higher quality, safety and efficiency.

On December 21, 2018, FAW Group, China South Industries Group Corporation (parent company of Changan Automobile) and Dongfeng Motor Corporation signed an agreement of intent in Beijing to build T3 technology platform joint venture that will research and develop the cutting-edge generic core technologies and platform of new energy intelligent vehicle industry and provide relevant supporting services. As three investors planned, the T3 technology platform company, aiming to “become a pioneer of future forward-looking vehicle technologies to create a car ecosystem which is more environmentally friendly, safer and better”, would be dedicated to developing the next-generation vehicle core systems, modules and platforms with new energy and intelligent connectivity as its focuses in order to realize a new round of upgrade and transcendence over vehicle technologies and promote the forming of core competency for next-generation vehicles.