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26 JUNE 2019 AL CIRCLE

Dongfeng Automobile plans to set up NEV supply chain fund of RMB 1.2 billion

EDITED BY : DEBANJALI SENGUPTA 1MINS READ

Chinese automaker Dongfeng Automobile Co. Ltd. (DFAC) is reportedly planning to set up an industrial fund, focusing on new energy vehicle supply chain, in association with Beijing Ruihe Xinye Investment Co., Ltd. (R&H) and the state-owned Hanjiang Investment Holding. The fund, referred to as Dongfeng Hanjiang Fund, will involve in a total investment of RMB 1.2 billion.

Dongfeng Automobile Co. Ltd.

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Dongfeng Automobile while announcing its fund setting plan on June 22 clarified that the fund would principally support the automaker’s NEV operation programme in terms of the automobile marketing terminal.

The automaker at present owns three new energy passenger vehicle models - the Junfeng E11K, the Junfeng ER30, and the Junfeng E17. In a bid to increase the NEV sales, the company has formed a subsidiary firm Dongfeng New Energy Vehicle Project Company that purchases NEVs from the carmaker and rent them to other companies.

DFAC said setting up this fund, in response to the government’s call for energy conservation, emission reduction, and greener travelling, would improve the company’s cash flow and decrease its receivables.

In the meanwhile, China’s NEV subsidies cancellation is leading electric vehicle makers to struggle in meeting sales amid increasingly strict emission standards.


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EDITED BY : DEBANJALI SENGUPTA 1MINS READ

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