Senmiao Technology Limited (NASDAQ: AIHS) announced today that it has partnered with BYD Auto Sales Co., Ltd., a subsidiary of BYD Company Ltd (HKEX: 01211) to promote EV vehicles in China.
Under the agreement, Senmiao said it will buy the electric vehicles from BYD and working with BYD on the promotion of EV vehicles in China's ride-sharing or ride-hailing market.
Xi Wen, the chairman and chief executive officer of Senmiao stated, "We are delighted to enter into this framework agreement with such a well-regarded company as BYD as we continue to promote the use of EVs in public transportation. ”
He added, “We feel that the combination of our position in the ride-sharing markets where we operate along with the demand for EVs in China generally will be an exceptional fit for our customers. Our goal is to provide a wide range of financing and leasing options as we build out Senmiao's network throughout China, and agreements such as this are instrumental to achieving appropriate scale."
As part of the agreement, Senmiao will provide an initial deposit and expects to purchase at least 5,000 vehicles from 2020 to 2021 to support expected ride-sharing growth.
Senmiao ranks first in the ride-sharing market in some large Chinese cities, including Chengdu and Changsha and BYD is one of China's largest manufacturers of automobiles, battery-powered bicycles, buses, trucks, and etc.
"We are pleased to partner with Senmiao and look forward to supporting the expansion of EV automobiles in the ride-sharing market," Weiming Zhang, the vice general manager of BYD said.
Shares of Senmiao closed at $1.12 per share today, down 21%, while stock of BYD went up nearly 9%, closed at HK$139.9 per share on Tuesday.