Shanghai (ZXZC)- China Grand Automotive Services Group Co., Ltd (China Grand Auto), the Chinese biggest auto dealership, announced on November 19 the plan of building a 50/50 joint venture with State Grid Electric Vehicle Service Co., Ltd. (State Grid EV) to co-develop NEV charging business and NEV-related after-sale services.

(Photo source: China Grand Auto's WeChat account)

The joint venture is expected to involve a registered capital of RMB180 million, of which RMB90 million would be subscribed by each parent company. Through the joint venture, both companies intend to make most of their advantages in capital, branding, credit, sales channels, technology and management experience for the purpose of developing battery charging & swapping businesses for NEVs and relevant after-sale services. Aiming to build a NEV service chain integrating charging, travelling and energy, both parties are willing to share the battery charging & swapping facilities by offering the services access to an IoV (Internet of Vehicles) platform. 

China Grand Auto engages in the distribution of passenger cars, and in the provision of financial lease and integrated services. It mainly operates businesses through vehicle sale, passenger car financial lease, maintenance and commission agency services.

Its parent company, Xinjiang Guanghui Industry Investment Group Co.,Ltd, forged a strategic partnership with China Evergrande Group, a Chinese property giant famous for its car-building ambition, in September 2018. Based on the agreement, Evergrande becomes the second-biggest shareholder of the auto dealership giant.

The four-year-old State Grid EV is a wholly-owned subsidiary of State Grid Corporation of China, a state-owned electric utility monopoly. Focusing on EV battery charging and swapping businesses, the subsidiary has set up joint venture with up to 19 provincial power grid companies, standing at the forefront of the world in terms of such businesses as community charging and V2G (Vehicle-to-Grid).