According to business inquiry platform Qichacha on 21 Feb, Chongqing Chezhixuan Technology Co., Ltd. was established on February 21, 2022. The legal representative of the company is Wang Yang.
The new firm has a registered capital of 1.2 billion yuan ($190 million).The business scope includes software development, enterprise management, technical services, technology development, etc.. Shareholder information shows that the company is wholly owned by Leading Ideal HK Limited, an affiliate of China-based EV maker Li Auto-W（02015）(NASDAQ: LI) .
Previously we reported that Li Auto purchased a plot of land for about 431 million yuan ($67.98 million) in Chongqing, the transaction occurred on January 27, 2022，which triggered some discussion about the construction of a base in the city.
Why It’s Important:
Li Xiang, Founder, Chairman and CEO of Li Auto stated that the company would increase its investment layout in Chongqing and continue to strengthen its cooperation with the city as a whole.
Li Xiang wrote in an internal letter of the company that the goal of Li Auto is to gain a 20% market share of China’s smart electric vehicles by 2025, and sell 1.6 million electric vehicles annually. (Li Auto, which competes with local rivals Nio and Xpeng，delivered 90,491 vehicles ，it ranked third in annual deliveries last year.) The latest development indicates plans for a more aggressive capacity ramp-up.
At present, Li Auto has two production bases. One is Changzhou Manufacturing Base and the other is Beijing Green Intelligent Manufacturing Base that is currently being transformed. Obviously, the two production bases currently owned by Li Auto cannot support this goal.
Li Auto signed the strategic cooperation framework agreement with the Chongqing municipal government on Dec. 15, pledging to increase investment in the city. The establishment of the new company can be seen as a big move for Li Auto’s layout in Chongqing.