Chinese EV startup CHJ Automotive will acquire Lifan Automobile for USD94 million
CHJ Automotive Co. Ltd, founded in 2015 and is based in Beijing, China, researches, develops, manufactures vehicles and intelligent system for car. Chinese startup plans to acquire Lifan Automobile for CNY650 million (USD94 million) and cooperate with its parent Lifan Industry (Group) to qualify to make EVs. The news was given by Lifan Industry, which announced that the agreement will optimize the company’s industrial structure and speed up its transformation and its ability to compete in a global market.
Lifan Group is a large-scale private enterprise focusing on scientific research and development as well as manufacturing and sales of engines. . It is a civilian owned Chinese motorcycle and automobile manufacturer headquartered in Chongqing, China.
Lifan Automobile earned operating income of CNY1.9 billion (USD276 million) in the first eleven month
The agreement between the two companies aims to join forces. The project calls for Lifan Industry and CHJ to jointly develop power vehicle control technology, man-machine interaction systems in cars, vehicle models tailored for car-of-caring and other emerging technologies in the smart travel industry.
Li Xiang, who is also the founder of internet car marketing platform Autohome, told Yicai Global in an interview that CHJ will not adopt the traditional original equipment manufacturer pattern, because OEM cannot guarantee quality and establish a brand image.
CHJ debuted its first car model, Leading Ideal One, in October. It is projected to be delivered in next year’s fourth quarter. CHJ, WM Motor Technology and Byton have obtained EV production qualifications via acquisition, while Nio and Xiaopeng Motors, which have already achieved mass production, ply the OEM pattern.
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