Kaixin Auto reached a new contract, fully committing to the transition towards new energy.
In a significant move towards new energy transformation, Kaixin Auto, a company originally focused on used car trading, has inked an export agreement with Myanmar New Power Motor for 1000 SKD-mode new energy vehicles, marking the countdown to the delivery of the first batch of these vehicles. Kaixin Auto highlighted that this collaboration stems from the favorable business environment and policies in the field of new energy vehicles in both China and Myanmar, representing a significant breakthrough for Kaixin Auto's platform in Chinese automotive import and export transactions.
Kaixin Auto initially focused on used car trading and retail services, going public on NASDAQ in May 2019. Starting in 2021, the company shifted towards expanding its new energy business. In August 2021, they established a new energy automotive department, incorporating teams for R&D, production, and marketing. In November 2022, Kaixin Auto announced a merger agreement with MORNING STAR AUTO INC., acquiring 100% equity through the issuance of 100 million common shares. The acquisition was completed in August 2023, and Kaixin Auto is now fully committed to transitioning into new energy vehicle manufacturing while retaining traditional car sales, with business focus placed on A00-level models. Concurrently, the company has been intensifying its investment in automotive AI, forming a dedicated technical team in April 2023 and officially establishing an AI Automotive Research Institute in December of the same year. Grasping new energy and betting on AI may indeed be a crucial strategy for the company's future development.
Some industry insiders once pointed out that, amid trends like price wars and hybrid development, the landscape of the domestic new energy vehicle market is changing rapidly. Whether it's the transformation of low-speed electric vehicle companies entering the A00-level pure electric vehicle track or traditional car companies positioning themselves in the A00 pure electric vehicle challenge, the task is not small. Without forming a scale, it is challenging to sustainably continue. In the current fiercely competitive landscape of the new energy passenger car market, for Kaixin Auto, which originated from a used car dealership, it is indeed quite a pressure to carve out a share in the A00-level pure electric market or even become a "new force" competing with domestic electric vehicle giants.
Despite this, Kaixin Auto has shown considerable momentum in expanding its market presence over the past two years. While the automotive market in Myanmar is still in its developmental stage, the country's large population presents a substantial potential customer base, indicating promising future prospects. The contract with Myanmar New Power Motor can be viewed as a crucial attempt by the company to broaden its overseas market reach. Kaixin Auto's representatives express the company's commitment to continuing the drive in overseas markets and collaborating with more high-quality industry partners.