Sokon signs contract with CATL for long-term battery supply

Shanghai (Gasgoo)- Chinese automaker Chongqing Sokon Industry Group Stock Co., Ltd. (“Sokon”) stated on April 26 it has inked long-term contracts with core suppliers like CATL as part of efforts to keep its production capacity stable when facing the challenges including the pandemic and the shortage of raw materials.

AITO M5; photo credit: Sokon

According to the statement, Sokon has signed an agreement with CATL, which will remain effective from 2022 to 2026, in order to stabilize the battery supply chain and consequently ensure a punctual car delivery with decent quality.

Besides, the company said it has hammered out and implemented tactics to help suppliers build local factories for core components and boost the integration of auto parts, so as to enhance profitability and operation efficiency of industrial chain.

Sokon added that it currently has a solid order backlog and its production business is working properly.

There are such automobile brands under the management of Sokon, including SERES, Dongfeng Fengguang, Dongfeng Sokon, DFSK, and Ruichi. Their product lineups encompass both oil-fueled vehicles and new energy vehicles, covering the segments of SUV, MPV, and mini car. In addition, Sokon also has business units dedicated to auto parts production and sales.

In late January this year, Sokon forecasted that it would record an annual net loss attributable to shareholders of 1.55 billion to 1.95 billion yuan ($236.302 million-297.283 million) in 2021.