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eHi Car Services Enters into Strategic Partnership with SAIC Motor
|By PR Newswire
|September 1, 2014 10:05 AM EDT
SHANGHAI, Sept. 1, 2014 /PRNewswire/ -- eHi Car Services has entered into a strategic partnership with SAIC Motor, the largest automotive manufacturer in China and a Global Fortune 500 company. This relationship starts with a first order of thousands of vehicles including Roewe E50 electric vehicles and Roewe 550 plug-in electric hybrid vehicles.
Recently, the Chinese government has released several stimulating policies such as a waiver of sales tax and free license plates to further develop the electric vehicle industry in China. The industry is growing rapidly, and the alliance of eHi and SAIC is a milestone, signaling the bright future of China's electric vehicle industry.
Xiaoqiu Wang, Vice President of SAIC, said during the signing ceremony, "As the first Chinese automaker who strategically planned the development of alternative energy vehicles, SAIC has been focusing on R&D, manufacturing and production. Currently, SAIC offers Roewe E50 EV, Roewe 550 PLUG-IN HYBRID, Roewe 750 FUEL-CELL, and other alternative energy vehicles. Other than having government support, it is more important to create an active market demand for electric vehicles in China. We believe the alliance of eHi and SAIC can help promote electric vehicle adoption as well as the electric vehicle industry in China."
Ray Zhang, eHi's founder and CEO, mentioned that eHi has been maintaining a great relationship with SAIC. "Both parties have been working together on the rental service of electric vehicles since 2013. The successful collaboration is on a strong foundation for this strategic partnership," said Ray Zhang. "We are very impressed by SAIC's leading technologies, excellent product quality and post-sale services. Our strategic partnership will cover all SAIC product lines from existing vehicle models to future models particularly in alternative energy vehicles. eHi will actively participate in SAIC's product development and market promotion. In turn, SAIC can leverage eHi's nationwide coverage to offer consumers SAIC's latest products. We are looking forward to adding SAIC's best-in-class products in our wide variety of offerings to our valued customers through our online and offline channels."
As a leading car rental services provider in China, eHi Car Services has the largest directly-owned service network covering over 90 Chinese cities and over 700 service locations. eHi has been providing EV rentals and free charging service to its customers, and these services will be available in more cities in China.
eHi's Roewe E50 EV rental has been well accepted by many customers. This new round of EV acquisition is based on eHi's more than a year of operating experience, data analysis and market experiments.
SAIC released its Roewe 550 PLUG-IN model in March this year, which has received very positive feedback. The car has a driving range of more than 500 kilometers while reducing fuel consumption by 70%. eHi is looking forward to the success of Roewe 550 PLUG-IN in the rental car market because of the car's greater fuel efficiency and better comfort level.
Some experts stressed that this strategic partnership between eHi and SAIC is a great start to allow consumers to experience and learn more about alternative energy vehicles given the growing environmental concern in China. It also helps in the building of EV charging infrastructure and developing related technologies.
eHi is the leading car rental and car service provider in the fast growing market in China. Founded in January 2006 with the goal of providing comprehensive mobility services to both consumer and corporate clients, eHi is the first car rental company utilizes the latest information technology to achieve a complete service delivery and vehicle management system in China. With its headquarter based in Shanghai, eHi offers car rental and car service nation-wide with more than 700 eHi outlets located in more than 90 cities. eHi's fleet consists of more than 100 different vehicle types. During the past eight years since its establishment, eHi has experienced a steady and rapid growth while achieving industry leading vehicle utilization rate and brand-name recognition. Today, eHi has become the designated car service provider for most of the Fortune 500 companies that have operations in China.
About SAIC Motors
SAIC Motor is the largest auto group on the Chinese A-share stock market (Stock Code: 600104). By the end of 2013, SAIC's total equity topped 11 billion units. SAIC Motor provides research, production, sales and logistics services of vehicles (passenger cars and commercial vehicles) and components (engines, gearboxes, powertrains, chassis, interior and exterior and electronic components). It also offers vehicle telematics, second-hand vehicle transactions and auto finance services. SAIC's affiliated vehicle companies include Morris Garages, SAIC Motor Commercial Vehicle Co, Shanghai Volkswagen Co, Shanghai General Motors Co, Shanghai General Motors Wuling (SGMW), NAVECO Ltd, SAIC-IVECO Hongyan and Shanghai Sunwin Bus Corporation (SUNWIN). SAIC Motor has maintained its dominant position in the domestic auto industry. In 2013, it sold 5.11 million vehicles, an increase of 13.7 percent over the past 12 months. In addition, it took in $92.02 billion in revenue that year and climbed up the Fortune 500 list for the tenth year running, making its way to 85th place from last year's 103rd.
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