LeEco and GAIG to invest USD 26 million into an ecosystem for cars (updated)

Guangzhou Automobile Industry Group (GAIG) announced on Monday the establishment of a new company, joining forces with tech giant LeEco and motor vehicle insurance service provider Urtrust Insurance.

With RMB 1.4 billion (USD 213 million) as an initial investment, the new company, named Dasheng Keji, aims to build an internet ecosystem for automotives. GAIG is investing RMB 90 million for a 45% share of the company, LeEco is investing RMB 80 million for a 40% share, and Urtrust Insurance, RMB 30 million for a 15% share.

Dasheng Keji will set up a car e-commerce platform for the sale of both new and second-hand cars. Sales will be done in various arrangements, including exclusive sales and auctions. Service teams will be set up to provide services including insurance, logistics, and licensing.

GAIG first launched its internet automotive ecosystem project last July. The ecosystem incorporates car e-commerce, internet connected cars, and entrepreneurship and financing. By working with LeEco, whose ecosystem covers platforms, contents, terminals and applications, GAIG’s whole offline industry supply chain may combine with LeEco’s online advantages to reflect the concept of “automobile + internet”.

More details are expected to be disclosed this coming Wednesday by GAIG in Guangzhou.

GAIG is a state-owned joint-stock company that owns several Chinese automakers. The listed company has major businesses including passenger vehicles, commercial vehicles, motorcycles, accessories and components, and finance and insurance.

*The article was updated on Wednesday with more details of the new company.

(Top photo from Baidu Images)

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