Shanghai (ZXZC)- Ford Smart Mobility LLC and Zotye Auto signed an MOU (memorandum of understanding) on May 2 to set up a new 50:50 JV (joint venture) that will focus on providing ride-hailing operators and drivers with intelligent and customized all-electric vehicle solutions. The new JV involves a registered capital of $ 20 million, according to Ford China.

Ford Smart Mobility LLC, a subsidiary of Ford Motor, is committed to designing, building and investing in the emerging mobility services.

Zotye Auto is one of China's leading automakers in small-sized pure electric passenger vehicles (PV) as well as one of pioneering all-electric PV makers in this country. The company delivered nearly 36,000 all-electric vehicles in total last year.

The vehicles used for China's ride-hailing services are expected to increase 19% on an annual basis to 26 million units in 2022, according to Boston Consulting Group.

The new mobility JV will closely work with Zotye Ford Automobile Co. Ltd, which is set up to build a series of fashionable and affordable all-electric vehicle models for Chinese consumers, waiting for governmental approval. 

The new JV will offer all-electric vehicle rental services, data-driven fleeting management solutions, in-vehicle digital services as well as connectivity and other tailored vehicle services to ride-hailing operators and drivers.

According to Ford China, the new mobility JV will be situated in Zhejiang province and start to carry out ride-hailing businesses in the eastern coastal province of China.