Chinese NEV startup Li Auto recently founded a technology subsidiary in Chongqing, after it was rumored to build its third domestic plant in the largest municipality in southwest China.

Li ONE; photo credit: Li Auto

The newborn company, named Chongqing Chezhixuan Technology Co., Ltd. “Chezhixuan” was incorporated on Feb. 16 with a registered capital of 1.2 billion yuan $189.732 million according to the corporate database Tianyancha. It has a line of businesses covering software development, corporate management, technology development and technical services.

The company is wholly owned by Leading Ideal HK Limited, an affiliated company of Li Auto.

Prior to the foundation of Chezhixuan, Li Auto also established another two Chongqing-based subsidiaries, named Chongqing Chezhixin Power Technology Co., Ltd. “Chezhixin”) and Chongqing Chezhiyu Automotive Industry Co., Ltd. “Chezhiyu”).

According to Tianyancha, Chezhixin is permitted to operate such businesses as the R&D, production, sale and maintenance of new energy vehicles, batteries, charging piles, power supplies, and auto parts, while Chezhiyu's business scope extends to cover the manufacturing of auto parts and land consolidation service.

Last month, Chezhiyu purchased the land use right in Chongqing Liangjiang New Area for around 431 million $68.146 million a local media outlet reported in early February, citing data from the website of Chongqing Public Resources Trading Supervision. The move was regarded by some industry insiders as part of preparations to build Li Auto’s third domestic plant.

The NEV maker declined to comment on the matter, the media outlet added.