Skyworth Auto has signed a 10-year partnership agreement with Saudi Arabia's KAG, with the first phase of a five-year partnership having a business plan worth RMB 10 billion ($1.38 billion).
(Image credit: CnEVPost)
Skyworth Auto, the car-making arm of Chinese home appliance giant Skyworth, has signed a cooperation agreement with a Saudi company, as more Saudi money enters the Chinese car-making sector.
Skyworth Auto has signed a 10-year strategic cooperation agreement with the Saudi royal-controlled KAG Group, with the first five years in the first phase of the partnership having a business plan of RMB 10 billion yuan ($1.38 billion), the company announced today.
The second phase of the five-year cooperation will be carried out subject to the first phase, Skyworth Auto said in a statement today.
On May 7-8, KAG's management visited Xuzhou, Jiangsu province, to discuss the strategic partnership and sign the agreement with Skyworth Auto, according to the statement.
(Image credit: Skyworth Auto)
KAG's main business scope includes the transportation of Saudi royal cars, new energy vehicles (NEVs), data analysis and consulting in Saudi Arabia, and more than 85 percent of the underground water pipes of Saudi municipalities, according to the statement.
The two have also entered into cooperation in areas including passenger cars, supercharging stations, and KAG will be Skyworth Auto's exclusive partner in Saudi Arabia, according to the car company.
Skyworth Auto is expanding its overseas markets and setting up KD (knocked down) plants in key regions and the Middle East is one of the main target destinations for building KD plants, it said.
Skyworth's future KD plant in Saudi Arabia will be in partnership with KAG and new agreements will be signed gradually, the carmaker said.
(Image credit: Skyworth Auto)
Founded in June 2000, Skyworth is one of China's most recognized home appliance giants.
In April 2021, Skyworth announced its entry into car building when its founder, Huang Hongsheng, announced that the name of Skywell Auto, which he founded, was changed to Skyworth Auto.
Skyworth Auto unveiled the Skyworth ET5 at the time, which was renamed from the Skywell ET5, which went on sale in October 2020.
In July 2021, the model was officially launched, but the name was changed to Skyworth EV6.
Currently Skyworth Auto sells EV6, EV6 II, HT-i, HT-I II in China.
($1 = RMB 7.2266)
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