Ford and Zoyte to form JV for EV ride-hailing service
Ford and its partner in China, Zoyte want to set up a new joint venture for building electric cars dedicated to ride-hailing appications such as Uber or Didi Chuxing in the PRC. Ford and Zoyte plan to lease the new EVs with extra options for fleet management.
The market for mobility, or better app-based taxi services is growing with the press release by Ford and Zoyte quoting the Boston Consulting Group, saying China’s “‘e-hailing’ market is expected to grow by 19 percent annually through 2022, with an overall fleet size potentially reaching up to 26 million.”
Clearly, the two companies are hoping for their share. The plan is to set up a dedicated joint venture that will offer “smart, customized all-electric vehicle solutions to fleet operators and drivers” in China reads the press release.
Ford and Zoyte’s manufacturing JV, which has so far been laid out in an MOU, is to build and sell “a range of stylish and affordable all-electric vehicles under a new indigenous brand, pending regulatory approval.”
The new energy vehicles will be available to lease and include data-driven fleet management solutions, in-vehicle digital services, connectivity and vehicle customization.
Both Ford and Zoyte have earmarked 20 billion dollars for the new venture which each company owning 50 percent. The company will be based in Zhejiang province and initially focus on the market there.