Tesla, Xpeng, Nio and other EV makers to face another rival as parent of Juneyao Airlines joins China electric-car fray

Juneyao Group’s acquisition of EV start-up Yudo Auto signals its intent to enter an increasingly crowded market

The company appears set to join an eclectic list of electric-car hopefuls that includes Baidu, Xiaomi, Huawei and China Evergrande

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Yudo Auto showed a concept electric vehicle at the Auto China 2018 trade show in Beijing on April 25, 2018. Photo: Getty Images

Published: 7:29pm, 5 Sep 2022

Shanghai-based Juneyao Group, the parent company of Juneyao Airlines, plans to enter the increasingly crowded mainland China market for electric cars after it took control of start-up Yudo Auto.

It becomes the latest Chinese company to diversify into the fast-growing electric vehicle (EV) sector, where established home-grown companies Xpeng, Nio and Li Auto, along with US-based market leader Tesla, are already facing a parade of newer rivals.

Two sources with knowledge of Juneyao’s business strategy said it had been preparing to build battery-powered vehicles for several years, and the recent acquisition of Yudo, a Fujian province-based EV start-up, represents a leap forward for the privately-owned firm.

Juneyao would not comment on the matter, and Yudo was not available for comment on Monday.

A Juneyao Airlines Airbus A320 passenger aircraft, pictured in 2020 at the Airbus factory in Blagnac near Toulouse, France. The airline is Juneyao Group’s largest business. Photo: Reuters

Dozens of Chinese companies, including tech behemoths Baidu and Xiaomi, telecom equipment giant Huawei Technologies Cos and debt-ridden property developer China Evergrande, have already started developing or building electric cars as drivers increasingly replace their petrol-guzzling vehicles with environment-friendly EVs.