BERLIN, Sept. 6 (Xinhua) -- German producer for electric light commercial vehicles (eLCV) StreetScooter and Chinese automobile manufacturer Chery Holding Group on Friday signed a memorandum of understanding (MoU) to begin production in China.
Mass production of the electric delivery vans by StreetScooter, a subsidiary of Germany's Deutsche Post, is scheduled to begin in 2021 with production capacities of up to 100,000 electric vehicles per year.
"This production and sales agreement is a major milestone in our company's, as yet, short history," said Joerg Sommer, CEO of the German StreetScooter GmbH that was only founded in 2010.
According to Deutsche Post, the cooperation also includes establishing a joint venture.
Yin Tongyue, chairman of Chery Holding Group, stressed the strategic importance for both companies. "The strong cooperation between Chery and StreetScooter will create opportunities for both parties to explore the global market, especially in the EU and China."
Deutsche Post announced that the market entry of its StreetScooter would be "gradual" while the total investment could amount to up to 500 million euros (552 U.S. dollars).
In addition, the joint venture could establish a research and development arm in China to focus on developing eLCV components, technology, vehicle architecture and design, autonomous logistics and energy solutions.
"China is currently the market with the greatest potential for light electrically powered commercial vehicles. In Chery, we have found an excellent partner to implement our idea of environmentally friendly transport in China," StreetScooter CEO Joerg Sommer told Xinhua.