Jiading government officials and SAIC Motor leaders exchange ideas on their cooperation to promote new energy vehicle rental service at the signing ceremony. [Photo/jiading.gov.cn]

The Shanghai-based SIAC Motor Corp recently struck a deal with the city's Jiading district government to work together to promote new energy vehicle (NEV) rental service, local media reported on Feb 24.

According to the deal, the two parties will set up a joint venture on NEV rental service, and intend to develop it into a world's leading company of its kind in the next five years.

They expect that the service will cover the entire Shanghai and expand to 20 cities in China with more than 5,000 NEVs available in 2016.

In 2018, their business is expected to cover 100 domestic cities with over 50,000 NEVs put into use, and the company is geared up for overseas expansion.

And by 2020, they hope that the service will cover major Chinese and foreign cities, with 300,000 NEVs available, and business revenue reaching 20 billion yuan ($3 billion). Hence, the company will become the largest NEV rental service operator in the world.

This cooperation is also considered a move of SIAC Motor to promote its new energy vehicles, such as Roewe E50, E550 and the soon-to-be-released E950.

Ma Chunlei, Party chief of Jiading district said that the district now has leading auto manufacturers, and strong auto R&D strengths with 106 auto research institutions and 15,000 research personnel. The cooperation with SIAC Motor is in line with the district's plan to build a global auto industry center and is win-win for both sides.

Chen Hong, chairman of SAIC Motor claimed that the company has close relationship with Jiading, since the district is the birthplace of its subsidiary SAIC-Volkswagen. Chen vowed to make contribution to the country's auto industry transformation and the district's economic development.