Volkswagen-Didi joint venture said to settle in Jiading District, Shanghai

Shanghai (Gasgoo)- The joint venture between Germany's Volkswagen and China's ride-hailing giant Didi Chuxing has reportedly settled in Jiading District, Shanghai, according to Chinese media outlets. 

Dubbed Shanghai Juzhong Automotive Technologies Co.,Ltd, the joint venture was founded in December 2018 with a registered capital of RMB64 million. According to the record on qichacha.com, a Chinese company information searching platform, Volkswagen (China) Investment Co., Ltd holds 40% stake in the joint venture, while the other 60% stake belongs to Didi's affiliate Huidi (Tianjin) Business Service Co. Ltd.

In accordance to relevant agreement, Volkswagen can buy another 10% stake based on the business development presence and make the joint venture 50/50 controlled by two parent companies.

Although Volkswagen will be the only shareholder of Shanghai Juzhong in addition to Didi Chuxing, both parties agree that there could be more resources to purchase cars aside from the German auto giant.

Volkswagen stated that it builds the joint venture with Didi is to explore and develop fleet operation business. The joint venture will focuse on fleet operation, fleet sales, fleet management, repair and maintenance services. Besides, it is going to explore fleet leasing business and conduct extensive discussion with industry leading companies in smart mobility field.

It is previously reported that the joint venture is going to build a massive car-sharing fleet with around 100,000 vehicles, among which 60,000 NEVs would come from Volkswagen. Besides, the new company will get involved in DiDi's deployment and services for globalization, while won't work on the ride-hailing giant's current businesses.