By Michael Elkins
According to a report released by Reuters on Tuesday, Juneyao Group, the parent of Juneyao Airlines Co Ltd (SS:603885), plans to start making electric vehicles. Citing people familiar with the matter, the company is seeking a way to diversify from businesses that have been hit hard by COVID.
The people speaking to Reuters declined to be named as they were not authorized to speak to media. However, they told reporters that the Shanghai-based Juneyao is setting up a team internally to explore EV making plans. They added that the plans are still in the preliminary stage, but the company hopes to tap into a growing market that has been aided by generous government subsidies and tax exemptions.
Juneyao on July 20 registered a company with 1 billion yuan ($146.23 million) of capital for businesses including EV sales, auto parts research and development and EV charging infrastructure operations, according to Qichacha, an information provider that uses official company registration sources.
Wang Han, the son of the late Juneyao co-founder, Wang Junyao, is also a majority shareholder of Yudo Auto, a Fujian-based EV maker, according to Qichacha.