Senmiao Technology Announces Order of 500 Electric Vehicles Under Framework Agreement with BYD
Senmiao Technology Limited (Nasdaq: AIHS) has announced an order for 500 electric vehicles from BYD Company Limited, through an authorized dealer. This strategic move targets the ride-hailing market in Chengdu and Changsha, with the first 20 vehicles expected to be available in November 2020. Senmiao aims to offer finance and leasing options to ride-sharing drivers, enhancing its service offerings in a recovering market after COVID-19. The deal follows a framework agreement aimed at promoting EV usage in China's ride-hailing sector, potentially benefiting the company's operations in the fourth quarter of 2020.
- Order of 500 electric vehicles from BYD enhances service offerings in ride-hailing market.
- First 20 vehicles available by November 2020, targeting immediate market needs.
- Expected to improve financial performance in fourth quarter of 2020 as demand rebounds.
- None.
CHENGDU, China, Nov. 6, 2020 /PRNewswire/ -- Senmiao Technology Limited ("Senmiao") (Nasdaq: AIHS), a provider of automobile transaction and related services targeting the online ride-hailing industry in China, today announced that it has ordered 500 electric vehicles ("EVs") manufactured by BYD Company Limited ("BYD",(HK:1211 and SZSE:002594)) from Chengdu Zhishengmingyang Automobile Trading Co., Ltd., an authorized dealer of BYD Auto Sales Co., Ltd., which is a wholly owned subsidiary of BYD.
Senmiao expects to provide finance and leasing options of these EVs to ride-sharing drivers in Senmiao's two principle markets, Chengdu and Changsha. The first 20 cars are expected to be available for purchase or leasing in the Changsha market in November 2020.
The order was made pursuant to the previously announced framework agreement with BYD Auto Sales Co., Ltd. for the purchase of BYD manufactured EVs and joint promotion of the use of EVs in China's ride-hailing market. Senmiao also expects to implement services and technology in these vehicles pursuant to its framework agreement with Chengdu Luxingtong Information Technology Co., Ltd., a China-based provider of intelligent vehicle networking services.
Xi Wen, Senmiao's Chairman and Chief Executive Officer stated, "We are taking advantage of our agreement with BYD to purchase vehicles at favorable prices and expect to offer financing and service options for ride-sharing drivers in one of our largest core markets. Our goal is to ultimately provide a total solution for potential customers as demand for ride-hailing services continues to rebound throughout China after the COVID-19 pandemic has been contained. In the coming weeks, we expect to deploy these purchased vehicles into existing and new markets and begin to recognize the economic benefit in the current fourth quarter of 2020."
About Senmiao Technology Limited
Headquartered in Chengdu, Sichuan Province, Senmiao provides automobile transaction and related services including sales of automobiles, facilitation and services for automobile purchase and financing, management, operating lease, guarantee and other automobile transaction services aimed principally at the growing ride-sharing market in Senmiao's areas of operation in China. For more information about Senmiao, please visit: http://www.senmiaotech.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements (including those relating to the framework agreements described herein and the potential benefits thereof) also are subject to risks, uncertainties and assumptions, including those detailed from time to time in the Senmiao's filings with the SEC, and represent Senmiao's views only as of the date they are made and should not be relied upon as representing Senmiao's views as of any subsequent date. Senmiao undertakes no obligation to publicly revise any forward-looking statements to reflect changes in events or circumstances.
For more information, please contact:
At the Company: | |
Yiye Zhou | |
Email: edom333@ihongsen.com | |
Phone: +86 28 6155 4399 | |
Investor Relations: | |
The Equity Group Inc. | In China |
Adam Prior, Senior Vice President | Lucy Ma, Associate |
(212) 836-9606 | +86 10 5661 7012 |
© 2020 Senmiao Technology Ltd. All rights reserved.
View original content:http://www.prnewswire.com/news-releases/senmiao-technology-announces-order-of-500-electric-vehicles-under-framework-agreement-with-byd-301167878.html
SOURCE Senmiao Technology Limited
FAQ
What is the recent order made by Senmiao Technology Limited?
When are the first electric vehicles expected to be available for purchase?
What markets is Senmiao targeting with the new electric vehicles?
How could this order impact Senmiao's financial performance?
What is the strategic partnership mentioned in the press release?
