Shanghai-based electric vehicle maker AIWAYS reached a partnership with two state-owned auto enterprises to form a joint venture.
Chinese electric vehicle manufacturer AIWAYS announced a tie-up with two other car makers Changan Automobile and JMC on August 16, through infusing cash into joint venture formed by Changan and JMC.
The deal in fact took place on July 26 and the previous legal representative of the joint venture was replaced by AIWAYS’s co-president Xu Jun (徐骏). After capital injection, AIWAYS takes 50% shares of the joint venture, whereas the other two car makers halve the rest of shares.
The restructured company will target further innovation of automobile cutting-edge technology such as vehicle electrification and intelligence. The tripartite tie-up aims to strengthen branding and marketing effects and build a more competitive automobile enterprise.
The cooperation between AIWAYS and other two car makers made significant progress of Chinese automotive industry development as it is the only case that a private company gets engaged in the reform of state-owned enterprises in the industry.
“Partnering with Changan and JMC not only restructures industry chain and business model but also helps us to better understand the future development of auto industry and grab opportunities in an era of unprecedented change,” said AIWAYS’s founder Fu Qiang (付强).
AIWAYS is a smart electric vehicle maker based in Shanghai and covers the three major areas of travel services, automobile retail, and energy operation. So far, the company has completed a Series C round of funding boosting its valuation to USD 1.6 billion.