Shanghai (ZXZC)- Chinese EV startup WM Motor founded a financial leasing subsidiary on July 3 as part of its efforts to make inroads into the automobile financial rental domain, according to a record from TianYanCha.com, a large data technology service company with a vast repository of Chinese enterprise information.

(Photo source: WM Motor)

Involving a total registered capital of RMB800 million, the new subsidiary, dubbed WM Motor Financial Leasing (Tianjin) Co.,Ltd, is 75%-owned by WM Motor. Its business scope extends to cover financial leasing, rental, acquisition of leased assets from domestic and overseas companies, residual value processing and maintenance of leased property, leasing transaction consultation.

TianYanCha shows that Freeman Shen, founder and chairman of WM Motor, has been registered as the new company's chairman. Liu Xianzhi, who was named vice president of the startup in March, is appointed as the legal representative of the financial leasing subsidiary.

The EV manufacturer had said Mr. Liu's participation would help the company improve the expansion and operation over fundraising and automobile financial businesses by virtue of his multi-year experience and deep insight in bank credit and auto finance.

Automobile-related financial products and services have continuously been springing up with the rapid development of the auto industry. Facing the car sales slowdown in China, more and more automakers have dived into the auto finance domain to seek a new channel for boosting sales and gaining profit. Last year, traditional automakers, such as JAC Motors and Dongfeng Motor, as well as car startups like Tesla and XPENG Motors all built their own financial leasing company.