Kaixin Auto Holdings, a US-listed Chinese used car dealership, announced Friday that it has decided to set up a new energy vehicle business unit that will include new energy vehicle development, production and marketing teams.
Kaixin Auto’s shares jumped 30 percent in pre-market trading on the news.
Kaixin Auto said the move is made because of the steady support from the Chinese government for the rapid growth of the EV industry and the rapid development of the EV industry in China.
As Chinese consumers increasingly recognize EVs, new energy vehicles are expected to become a major consumer model in the automotive industry, the company said.
Kaixin Auto is in talks with several EV manufacturers about mergers and acquisitions and will announce the progress of major business transactions, if any, in a timely manner, the company said.
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