Senmiao Technology Announces Second Order of 500 Electric Vehicles Under Framework Agreement with BYD
Senmiao Technology Limited (NASDAQ: AIHS) has placed a second order for 500 electric vehicles (EVs) from BYD Company Limited, expecting delivery by March 2021. This follows an initial order for 500 units in November 2020 as part of a framework agreement aimed at boosting the online ride-hailing market in China. The company anticipates financing these vehicles through cash reserves and collaboration funds with BYD. The expansion aims to strengthen their position in Changsha's ride-hailing sector, with over 1.3 million rides recorded in Q4 2020.
- Order of 500 EVs from BYD indicates strong demand in ride-hailing sector.
- Total of 1,000 EVs ordered under a framework agreement for 5,000 vehicles.
- Anticipated financing from collaboration with BYD enhances capital capacity.
- Significant ride generation with over 1.3 million rides in Q4 2020.
- None.
CHENGDU, China, Jan. 21, 2021 /PRNewswire/ -- Senmiao Technology Limited ("Senmiao") (NASDAQ: AIHS), a provider of automobile transaction and related services targeting the online ride-hailing industry in China as well as an operator of its own online ride-hailing platform, today announced that it has ordered another 500 electric vehicles ("EVs") manufactured by BYD Company Limited ("BYD", HK:1211 and SZSE:002594) from an authorized dealer of BYD Auto Sales Co., Ltd., which is a wholly owned subsidiary of BYD. These automobiles are expected to be delivered to Senmiao by March 2021.
Senmiao initially expects to provide finance and leasing options for these EVs to ride-hailing drivers in one of Senmiao's two principal markets, Changsha, while exploring new potential cities in which to expand. Senmiao has seen an increase in demand for EVs in financial leasing and operating leasing due to the recent launch of its own proprietary ride-hailing platform, Xixingtianxia. Senmiao also expects to implement services and technology in these vehicles in preparation for ride-hailing activities, including advanced telematics and mapping software.
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. With this second order, Senmiao has ordered 1,000 of the anticipated 5,000 vehicles in 2020-21. Senmiao intends to finance the purchase of these vehicles through a combination of cash on hand along with financing made available to Senmiao through its collaboration with BYD.
Xi Wen, Senmiao's Chairman and Chief Executive Officer, stated, "We are pleased to have made our second order of 500 EVs from our partner BYD, given the positive reception of EVs from our initial order in November 2020. We anticipate continued strong demand for our finance and leasing offerings with the development of our online ride-hailing platform in Changsha as the ride-hailing market returns to normalcy following the impact of the pandemic in 2020. Our core markets Chengdu and Changsha are excellent examples of a paradigm shift throughout China in the ride-hailing market, as the onset of ride-generating aggregation platforms such as Gaode Map and Meituan are helping to balance the competitive dynamics across the industry. We feel that Senmiao is in an advantageous position with both growing brand recognition and strong working relationships with manufacturers, technology providers and large E-commerce platforms. We are currently focused on expanding our share in the Chengdu and Changsha markets where we generated over 1.3 million rides or orders in the last calendar quarter of 2020. Furthermore, we are confident that we will be able to successfully replicate our model in new markets this year."
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 as well as operates its own ride-hailing platform aimed principally at the growing online ride-hailing 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 Senmiao's purchase of EVs under the framework agreement with BYD and its collaboration with the aggregation platforms) 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
aprior@equityny.com lma@equityny.com
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SOURCE Senmiao Technology Limited
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