Benzinga | Feb 1, 2021 09:01AM EST

Senmiao Technology Reports Strategic Cooperation Deal With Electric Vehicle Charging Co., Chengdu Xingchong

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 the signing of a strategic cooperation agreement with Chengdu Xingchong New Energy Technology Co., Ltd. ("Chengdu Xingchong"), a subsidiary of Star Charge.

Star Charge is a leading electric vehicle ("EV") charging operator in China focused on the research & development and manufacturing of new EV charging equipment. According to data released by the China Electric Charging Infrastructure Development Alliance, Star Charge had the second highest number of charging terminals in China as of December 2020.

The strategic cooperation agreement serves as a framework for future business terms under which Senmiao's ride-hailing drivers and their clients will receive more favorable rates at Chengdu Xingchong charging stations, and the two companies expect to leverage their respective brands and resources to promote the use of EVs. This includes but is not limited to jointly developing system solutions for cars, charging terminals, stations and networks, and working together to gain support from local governments.

According to its website, Star Charge has more than 100,000 self-built charging terminals in 226 cities with a daily charging capacity of more than 5.6 million kwh. Star Charge also has been awarded three national level projects in China and is a strategic partner of 59 globally recognized automobile companies, including Mercedes Benz, Porsche, BMW, Jaguar Land Rover, Volkswagen, BYD, and BAIC.

Xi Wen, Senmiao's Chairman and Chief Executive Officer, stated, "We are thrilled to have entered into this strategic framework understanding with Chengdu Xingchong, a group member of China's top EV charging provider, with the goal of making their extensive network of charging stations available to our drivers at a preferred rate. We believe this arrangement will bring immediate benefits to both parties as we work together to accelerate the growth of our businesses and position ourselves in the market in China that is increasingly looking to adopt environmentally friendly practices."