Huolala Ventures into Electric Vehicle Manufacturing
Recently, Huolala, also known as Lalatech, officially submitted its IPO application to the Hong Kong Stock Exchange. It is worth noting that in the application, Huolala mentioned its car-making project: the company is using its experience in existing vehicle leasing and sales services to explore new business opportunities, such as developing electric commercial vehicles.
On April 4th, Huolala underwent a business change with the addition of new business scope including manufacturing and sales of intelligent in-car devices, sales of new energy vehicles, manufacturing of automotive parts and accessories, as well as sales of new energy vehicle electrical accessories.
The company was established in August 2016 with a registered capital of ¥10 million (about $1.45 million) and is wholly owned by Shenzhen Qiaoguan Network Technology.
Last July, the Chongqing High-tech Industrial Development Zone Management Committee announced that Huolala plans to establish its China headquarters for automobiles in its jurisdiction with a total investment of ¥10.5 billion. This move further confirms Huolala’s plan to enter into car manufacturing.
For Huolala’s electric vehicle manufacturing plan, it is widely believed that they will collaborate with automobile manufacturers to implement the plan. Although its competitors in the same industry, such as Kuaigou Dache and Didi Freight, have not yet announced any plans for car manufacturing.
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But Didi has been trying to develop its own cars. In March 2018, Didi partnered with Ideal to develop a pure electric MPV. The car was originally planned for mass production in early 2020, but it stalled due to the lack of additional investment from both parties. In November 2020, Didi teamed up with BYD to launch the D1 model, which is mainly aimed at the ride-hailing market and produced by BYD.
In May 2021, there were reports that Huolala would launch a car manufacturing project, but it was not confirmed by the company. At that time, Huolala posted job openings for experts in new energy truck production on its recruitment platform to recruit talent in this field.
In response to speculation from the outside world, Huolala stated at the time: “The company will continue to recruit and reserve talents, but regarding car manufacturing matters, there is no information available for public disclosure.”