China’s LeTV Supercar is really coming

“LeTV Auto Ltd. has officially signed a holding investment agreement with Easy Transport Ltd.,” LeTV Holdings said in an announcement released on Oct.20th. According to the agreement, LeTV Auto would gain a 70% of Easy Transport Ltd.’s share, which would make LeTV Auto in the controlling position.

LeTV Auto notes that in virtue of this strategic investment in Easy Transport Ltd., LeTV Supercar has already completed the full industrial value chain of smart-internet EV from research and development, production, marketing, car networking, charging strategy, after-sale service, car sharing to socialized operation.

Currently in China, Didi Taxi, Uber, Easy Transport and Ucar are four dominant special pick-up service providers. And resources indicate that Didi, integrated with Kuaidi Group, takes nearly 70% market share. Meanwhile, as special pick-up service initiator, Ucar enjoys its first-mover advantage, and Uber is backed by its globally-giant parent company. So, it can be concluded that Easy Transport is fighting alone in the battlefield, which may partly explain why Easy Transport accepted shareholding from LeTV Auto.

Zhou Hang, the founder and president of Easy Transport said that development strategy is more concerned than capital when he made the decision. Starting with communication and interaction in marketing with LeTV Auto, Easy Transport will further penetrate into other aspects of LeTV Eco-system, including mobilephone, television, shopping mall, membership, and so forth. And a profound integration of them will be expectable.

In fact, LeTV is accelerating its SEE plan (Super Electric Eco-system). LeTV announced its plan to manufacture EV on Dec.9th, 2014. Next, In 2015 Shanghai International Automotive Industry Exhibition, Aston Matin claimed a joint R&D project with LeTV, attempting to develop next-generation internet-cars.

Analysis indicates that LeTV Auto Eco-system is completing its closed circle by cooperation with BAIC to facilitate production, with Aston Matin to help with design and technology and with Easy Transport to find out an appropriate business model. But automotive professionals note that the most critical factor is how LeTV will get its plan practically rolled.

Oct.27th will witness a LeTV press conference in MasterCard Center, Beijing, which, as usual, will attract many attention from automotive and internet industry. It is said that some important information will be released by then.