U Power Expands Presence in Thailand through Collaboration with SAIC-Motor CP

Rhea-AI Summary

U Power (NASDAQ: UCAR) has signed a cooperation agreement with SAIC Motor-CP to integrate its battery-swapping technology into MG brand vehicles in Thailand. The partnership focuses on Thailand's taxi and ride-hailing markets, with plans for future expansion.

The collaboration combines U Power's UOTTA battery-swapping technology with SAIC Motor-CP's automotive expertise to address charging infrastructure challenges in Thailand's growing EV market. U Power will adapt its technology and develop a network of swapping stations, while SAIC Motor-CP will provide technical expertise and warranty support.

Thailand's taxi and ride-sharing fleet currently exceeds 300,000 vehicles, with projections indicating 50% electrification within five years. The country's EV3.5 policy is expected to drive 30-40% annual growth in electric vehicle adoption.

Positive

• Strategic entry into Thailand's large taxi and ride-sharing market of 300,000 vehicles
• Partnership with established automotive manufacturer SAIC Motor-CP
• Expansion into high-growth market with 30-40% annual EV adoption rate expected
• Solution targets commercial fleet operators, providing steady revenue potential

Negative

• Significant investment required for battery-swapping infrastructure development
• Faces competition in established Thai automotive market
• Success dependent on market adoption and infrastructure deployment

Insights

EV Technology & Market Strategist

This strategic partnership marks a pivotal expansion into Southeast Asia's burgeoning EV market, particularly significant given Thailand's ambitious EV adoption targets. The collaboration addresses a critical market gap in commercial fleet electrification, where traditional charging solutions face operational limitations.

The addressable market is substantial - with 300,000 vehicles in Thailand's taxi and ride-sharing fleet and a projected 50% electrification target within five years, this creates a potential market of 150,000 vehicles. At typical battery-swapping station utilization rates, this could support a network of 500-750 stations across major urban centers.

Three key competitive advantages emerge:

• Integration with SAIC's MG brand provides immediate vehicle compatibility and warranty support, reducing adoption barriers
• Existing relationships through CP Group connection offer valuable local market access and regulatory navigation capabilities
• Focus on high-utilization commercial fleets ensures consistent revenue streams and faster ROI compared to consumer-focused solutions

The timing aligns perfectly with Thailand's EV3.5 policy framework, which provides incentives for EV adoption and infrastructure development. The projected 30-40% annual growth in EV adoption creates a rapidly expanding market opportunity. However, successful execution will require navigating technical challenges including:

• Adaptation of UOTTA technology to tropical climate conditions
• Development of localized battery management systems
• Integration with Thailand's power grid infrastructure

This partnership could serve as a blueprint for expansion into other Southeast Asian markets, particularly those with similar commercial fleet structures and EV adoption initiatives. The focus on commercial fleets provides a more predictable path to profitability compared to consumer-focused strategies.

Cooperation agreement will see U Power's battery-swapping technology applied to SAIC Motor-CP's Thai MG brand of vehicles

SHANGHAI, Feb. 3, 2025 /PRNewswire/ -- U Power Limited (Nasdaq: UCAR) (the "Company" or "U Power"), a vehicle sourcing services provider with a vision to becoming a comprehensive EV battery power solution provider in China, today announced that it has signed a cooperation agreement with SAIC Motor-CP Co. Ltd. ("SAIC Motor-CP"), a joint venture company of Chinese automotive industry group CP Group and Thai industry conglomerate CP Group, to integrate U Power's battery-swapping technology into the company's MG brand of vehicles for sale in Thailand.

Under the agreement, U Power will adapt its existing battery-swapping technology and infrastructure to support SAIC Motor-CP's Thai MG brand vehicles, and will work to develop a comprehensive network of swapping stations and operating systems in the Thai market. SAIC Motor-CP will provide technical expertise and warranty support for the vehicles, creating an integrated solution for commercial fleet operators. The initial focus will be on Thailand's taxi and ride-hailing markets. Both companies plan to expand their battery-swapping solution to additional markets in the future, leveraging their combined expertise and resources to accelerate the transition to sustainable commercial transportation.

The partnership combines U Power's innovative UOTTA battery-swapping technology with SAIC Motor-CP's automotive expertise to address critical charging infrastructure challenges in Thailand's rapidly growing electric vehicle market.

"This partnership represents a significant milestone in accelerating electric vehicle adoption in Thailand's commercial transportation sector," said Li Jia, Chairman and CEO of U Power. "With Thailand's taxi and ride-sharing fleet exceeding 300,000 vehicles, and projections indicating 50% electrification within five years, our battery-swapping technology offers a practical solution to the charging challenges faced by high-utilization vehicles. In addition, this collaboration builds on strong existing relationships between our two companies, notably through Chatchaval Jiaravanon, U Power's second-largest shareholder and member of the Thai CP Group family, whose deep understanding of both organizations has helped facilitate this strategic alignment. We are eager to work together to drive innovation and build the foundation for Thailand's EV future."

"By combining our automotive expertise with U Power's innovative battery-swapping technology, we are creating a comprehensive solution that meets the unique operational demands of taxi fleet operators," said Feng Zhao, President of SAIC-Motor CP. "Thailand's EV3.5 policy is expected to drive 30-40% annual growth in electric vehicle adoption, and our partnership with U Power positions us to capitalize on this growth. The ability to quickly swap batteries rather than wait for charging will be transformative for the taxi and ride-hailing sectors, where vehicle downtime directly impacts business performance. We are confident this collaboration will accelerate Thailand's transition to sustainable commercial transportation while establishing a model that can be replicated in other markets."

About U Power Limited
U Power Limited is a vehicle sourcing services provider, with a vision to becoming an EV market player primarily focused on its proprietary battery-swapping technology, or UOTTA technology, which is an intelligent modular battery-swapping technology designed to provide a comprehensive battery power solution for EVs. Since its operation in 2013, the Company has established a vehicle sourcing network in China's lower-tier cities. The Company has developed two types of battery-swapping stations for compatible EVs and is operating one manufacturing factory in Zibo City, Shandong Province, China. For more information, please visit the Company's website: http://ir.upincar.com/.

Forward-Looking Statements
This press release contains "forward-looking statements". Forward-looking statements reflect the Company's current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "could," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "propose," "potential," "continue" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.

View original content:https://www.prnewswire.com/news-releases/u-power-expands-presence-in-thailand-through-collaboration-with-saic-motor-cp-302366310.html

SOURCE U Power Limited

FAQ

What is the scope of U Power's (UCAR) partnership with SAIC Motor-CP in Thailand?

U Power will integrate its battery-swapping technology into SAIC Motor-CP's MG brand vehicles in Thailand, focusing on taxi and ride-hailing markets, while developing a comprehensive network of swapping stations and operating systems.

What is the market potential for U Power (UCAR) in Thailand's EV sector?

Thailand's taxi and ride-sharing fleet exceeds 300,000 vehicles, with 50% expected to be electrified within five years, and the EV3.5 policy is projected to drive 30-40% annual growth in EV adoption.

How will U Power's (UCAR) battery-swapping technology benefit Thai taxi operators?

The technology will reduce vehicle downtime by enabling quick battery swaps instead of lengthy charging periods, improving operational efficiency for taxi and ride-hailing businesses.

What are SAIC Motor-CP's responsibilities in the U Power (UCAR) partnership?

SAIC Motor-CP will provide technical expertise and warranty support for the vehicles, creating an integrated solution for commercial fleet operators.

What are the expansion plans for U Power (UCAR) beyond Thailand?

Both companies plan to expand their battery-swapping solution to additional markets in the future, leveraging their combined expertise and resources.