StreetScooter GmbH, an electric vehicle manufacturing subsidiary of Deutsche Post is all set to mark its entry into the Chinese market. An official release from the Deutsche Post said the electric light vehicle company StreetScooter has signed an MoU with Chinese automobile manufacturer Chery Holding Group.
Chery is one of China’s leading automobile manufacturers, with a 20% market share in the electric commercial vehicles sector. The MoU for a joint venture was signed by StreetScooter CEO Jörg Sommer and Chairman of the Board of Chery Holdings, Yin Tongyue in Beijing.
The two companies plan to develop an electric light utility vehicle for the international market in selected countries. The project will include local manufacturing and sourcing as well as nationwide sales and service. Mass production is scheduled to begin in 2021 with production capacities of up to 100,000 electric vehicles per year.
“This production and sales agreement is a major milestone in our company’s, as yet, short history,” said the CEO of StreetScooter.
Yin Tongyue, Chairman of Chery Holding Group said: “The strong cooperation between Chery and StreetScooter will create opportunities for both parties to explore the global market, especially in the EU and China.”
The joint venture also aims to establish a location for research and development in China, focusing on developing eLCV components, technology, vehicle architecture and design, autonomous logistics and energy solutions.
The Chinese market for light commercial vehicles is expected to reach 2.3 million trucks by 2025, over 900,000 of which are supposed to be electric.