Deutsche Post's StreetScooter set to drive into Chinese market

September 6, 2019: StreetScooter is set to enter the Chinese market as the Deutsche Post subsidiary signed a Memorandum of Understanding (MoU) with Chinese automobile manufacturer Chery Holding Group to start 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 move comes after StreetScooter extended strategic cooperation with the Japanese logistics company Yamato. The new joint venture intends to target major fleet operators in the areas of last-mile delivery and e-commerce as potential customers.

The MoU is part of an economic agreement reached during German Chancellor Angela Merkel's trip to China. It was signed between Jörg Sommer, CEO, StreetScooter and Yin Tongyue, chairman of the board of Chery Holdings, in the presence of the heads of both the German and Chinese governments in the Great Hall of the People in Beijing.

According to 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. The companies plan to locally manufacture, source as well as offer nationwide sales and service for an electric light utility vehicle they plan to develop.

The joint venture 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 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," said Chery's Yin Tongyue.

Chery has a market share of 20 percent in the electric commercial vehicles sector, with a scope for expansion within the highly 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.