SAIC Motor to Invest Over $1B in New Energy Smart Cars
Chinese state-owned automobile manufacturing company SAIC Motor announced on Monday that in order to deepen its layout in the field of new energy and intelligent and connected vehicles, it plans to subscribe an additional capital contribution of 7.5 billion yuan ($1.12 billion) to the Qingdao SAIC Innovation and Upgrading Industry Equity Investment Fund Partnership (L.P.).
According to the announcement, the fund focuses on fields related to the automobile industry chain, including new energy, intelligent and connected vehicles, the sharing economy, intelligent manufacturing and new materials.
Total capital contributions after the additional subscription of the fund total 13.5495 billion yuan, of which the company subscribed for 13.5 billion yuan, holding an overwhelming 99.63% share. SAIC Financial Holdings subscribed for 45 million yuan, holding a 0.33% share. Shangqi Capital subscribed for 2.25 million yuan, holding a 0.02% share. Finally, Hengxu Capital subscribed for 2.25 million yuan, holding a 0.02% share.
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According to the announcement, by the end of 2021, Qingdao SAIC Innovation and Upgrading Industry Equity Investment Fund Partnership (L.P.) had invested in five sub-funds and 12 projects, mainly covering new energy, chips, new materials, and automotive electronics and software services.
SAIC Motor pointed out that this investment will help further expand the layout of the company within the automobile industry. It will also strengthen construction in the fields of new energy and intelligent and connected vehicles, and improve coordination between investment business and the company’s strategy, enhancing the company’s competitiveness and creating value for all shareholders.