Beijing (ZXZC)- On August 27th, Li Auto signed an investment agreement with Mianyang Xinchen Engine Co., Ltd. (also known as PXC), a subsidiary of Xinchen China Power Holdings Ltd. to set up a new joint venture. The venture, named Sichuan Lixiang Xinchen Technology Ltd., will develop and manufacture next generation range extension system.

Li Auto and PXC agreement signing ceremony, photo credit: Li Auto

PXC is one of China's leading independent automotive engine manufacturers in passenger vehicle and light commercial vehicle engine market, and an authorized third-party engine manufacturer of BMW. 

Different from other China’s new energy vehicle startups, Li Auto laid out a dual-way roadmap with both extended range and high voltage solutions, in order to provide EV users an experience as convenient as gas-powered vehicles. Li Auto expects the delivery of its battery electric vehicles starts in 2023. Therefore in the next two years, Li Auto still needs to depend on its extended range electric vehicles to compete with NIO, Xpeng and other rival brands.

Yanan Shen, Co-founder and CEO of Li Auto, believes that in a longer term, extended range EVs will be a rather perfect substitute of gas-powered vehicles. Smart extended range EV technology will also be one of the company’s core strategic developing directions. Shen said, by virtue of the research, developing and producing advantages from both companies, the new venture will provide Li Auto with high quality products, and expand the market shares of smart extended range EVs in China.

Li Auto will equip their full-size electric SUV (debuting in 2022) with next generation range extension system which will be manufactured by their new joint venture.