StreetScooter enters Chinese market in deal with Chery Holding Group

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Sep 6, 2019: Deutsche Post’s subsidiary StreetScooter GmbH has signed MoU with Chinese automobile manufacturer Chery Holding Group (Chery) to begin local production, sourcing and development of last-mile electric light commercial vehicles (eLCV) specially tailored to the Chinese market and potentially selected other countries.

The agreement was reached during German Chancellor Angela Merkel's trip to China.

Chery is one of China's leading automobile manufacturers, with a 20 percent market share in electric commercial vehicles sector. Chery is expanding its scope of mobility within the high promising segment of light cargo electric vehicles and micro e-mobility solution.

The Chinese market for light commercial vehicles is expected to reach 2.3 million trucks by 2025, over 900,000 of which are forecast to be electric. Such rapid growth will make China the largest market in the world for electric vehicles of this kind, followed by Europe and the USA.

Market growth is being driven by numerous factors: Urbanization, rising transport volumes in downtown delivery traffic (last mile), related municipal rules and regulations on vehicle emissions, and new mobility, logistics and energy solutions.

Major sales potential for the soon-to-be jointly produced electric vehicles will be offered by a regionally tailored and homologated version of the StreetScooter products and services. The new joint venture intends to target major fleet operators in the areas of last-mile delivery and e-commerce as potential customers.

As outlined in the MoU, the entry of electric light commercial vehicles into the Chinese market will be gradual. Mass production is scheduled to begin in 2021 with production capacities of up to 100,000 electric vehicles per year.

In addition to this, the JV also aims to establish a location for research and development in China, focusing on developing eLCV components, technology, vehicle architecture and design, autonomous logistics and energy solutions.

The market entry of StreetScooter in China continues the internationalisation of the company after the strategic cooperation with the Japanese logistics company Yamato.

Jorg Sommer, CEO of StreetScooter GmbH said: "StreetScooter now has a commercial presence in Japan and China, the two most important national economies in Asia."

Yin Tongyue, chairman of Chery Holding Group outlines the strategic importance: "The strong cooperation between Chery and StreetScooter will create opportunities for both parties to explore the global market, especially in the EU and China. It will also help Chery to further accelerate the development of innovative solutions based on new energy and smart interconnection and therefore surpass traditional fuel vehicles. Chery will actively integrate the global unique resources and know-how through open cooperation and customer centric unique-selling-propositions and offerings."

The memorandum was signed by StreetScooter CEO Jorg Sommer and chairman of the Board of Chery Holdings Co, Ltd, Yin Tongyue, in the presence of the heads of both the German and Chinese governments in the Great Hall of the People in Beijing.

Last month, DHL announced the deployment of its 10,000th StreetScooter for parcel-delivery operations. They allow DHL to promote climate friendly, low-noise mail and parcel delivery in Germany and is saving approximately 36,000 tonnes of CO2 a year.

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