CHENGDU, China, Oct. 20, 2020 /PRNewswire/ -- Senmiao Technology Limited ("Senmiao") (NASDAQ: AIHS), a provider of automobile transaction and related services targeting the online ride-hailing industry in China, today announced the signing of a Framework Agreement with BYD Auto Sales Co., Ltd., a wholly owned subsidiary of BYD Company Limited ("BYD",(HK:1211)), for the sale of BYD manufactured electric vehicles ("EVs") to Senmiao and joint promotion of EV vehicles for utilization in China's ride-sharing or ride-hailing market.
Under the agreement, Senmiao has agreed to promote and give priority to BYD's EVs for its leasing customers utilizing the vehicles for the purposes of ride-sharing, while BYD will provide favorable pricing, financial support, charging station priority, marketing, and after-sales service. As part of the agreement, Senmiao will provide an initial deposit and expects to purchase at least 5,000 vehicles from 2020 to 2021 to support expected ride-sharing growth.
Senmiao currently ranks first in the ride sharing market in large Chinese cities Chengdu (based in Sichuan Province with a population over 16 million) and Changsha (based in Hunan province with a population over 8 million). Senmiao has focused on growing its leading position in its core markets, and believes this agreement will help to accelerate its growth given the high demand for EVs and energy efficient automobiles.
In April 2020, China announced a Three-Year-Blue-Sky-Action Plan to accelerate the adoption of EVs. In addition, following the impact of the COVID-19 pandemic, China extended monetary incentives and prolonged purchase-tax exemptions of new EVs through 2022.
BYD is one of the largest manufacturers of automobiles, battery-powered bicycles, buses, trucks, forklifts, solar panels, rechargeable batteries, and most notably mobile-phone batteries.
Xi Wen, Senmiao's Chairman and Chief Executive Officer stated, "We are delighted to enter into this framework agreement with such a well-regarded company as BYD as we continue to promote the use of EVs in public transportation. We feel that the combination of our position in the ride-sharing markets where we operate along with the demand for EVs in China generally will be an exceptional fit for our customers. Our goal is to provide a wide range of financing and leasing options as we build out Senmiao's network throughout China, and agreements such as this are instrumental to achieving appropriate scale."
Weiming Zhang, the vice general manager of BYD Auto Sales Co., Ltd. noted, "We are pleased to partner with Senmiao and look forward to supporting the expansion of EV automobiles in the ride-sharing market."
The framework agreement sets out the general terms of the parties intentions for their collaboration, with the goal reaching a more definitive agreement as the collaboration matures.
About Senmiao Technology Limited
Headquartered in Chengdu, Sichuan Province, Senmiao provides automobile transaction and related services including sales of automobiles, facilitation and services for automobile purchase and financing, management, operating lease, guarantee and other automobile transaction services aimed principally at the growing ride-sharing market in Senmiao's areas of operation in China. For more information about Senmiao, please visit: http://www.senmiaotech.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements also are subject to risks, uncertainties and assumptions, including those detailed from time to time in the Senmiao's filings with the SEC, and represent Senmiao's views only as of the date they are made and should not be relied upon as representing Senmiao's views as of any subsequent date. Senmiao undertakes no obligation to publicly revise any forward-looking statements to reflect changes in events or circumstances.
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