News
FAW, Dongfeng, Changan form ride-hailing JV with e-commerce, tech giants
Source:Automotive News China | Author:Home >> Automaker | Publish time: 540 days ago | 576 Views | Share:

Three state-owned automakers directly controlled by the central Chinese government are establishing a joint venture with major technology and e-commerce companies to provide ride-hailing services with electric vehicles. 

China FAW Group, Dongfeng Motor Group and Changan Automobile Co. will each have a 16.39 percent stake in the 9.76 billion yuan ($1.5 billion) partnership, according to the statements released Friday. 

Nanjing-based Suning Corp., a major e-commerce company in China, holds a 17.42 percent stake in the new venture. 

China’s largest online retailer, Alibaba Group Holdings, and the country’s largest online game and messenger operator, Tencent Holdings, will own the remaining 33.41 percent interest in the partnership, along with several domestic investment companies.

Additional details about the stakes Alibaba and Tencent hold in the joint venture were not disclosed. 

While operating passenger vehicle joint ventures with global automakers, FAW, Dongfeng and Changan each produce and market light vehicles, including EVs, under their own brands. 

China’s ride-hailing market is currently dominated by Beijing-based Didi Chuxing, which acquired the Chinese business of its U.S. peer Uber in 2016. 

Domestic Chinese carmakers including Geely Automobile Holdings, BAIC Motor Co. and SAIC Motor Corp. have also deployed electrified vehicles for offer ride-hailing services. 

BMW AG launched a ride-hailing fleet with the BMW 5-Series sedan in the southwest China city of Chengdu in December. 

In October, Daimler signed an agreement with Geely to establish a ride-hailing venture in the east China city of Hangzhou.