Ideanomics Inc (NASDAQ:IDEX) said Friday that its electric vehicles subsidiary MEG Group has announced that sales operations are tipped to begin from its flagship 100,000 square meter sales and service center in China’s eastern Shandong province on May 1.
In a statement, the fintech company noted that the ultra-modern Qingdao-MEG Sales Center - now branded as the Mobile Energy Group Center - received development funding from the Chengyang business district of the city of Qingdao which allowed for the creation of the electric vehicle (EV) exposition center.
Ideanomics said its Mobile Energy Global division will be joined at the site by “more than 20 partners” ranging from electric vehicle manufacturers, battery makers, energy storage, energy management, and EV charging solutions providers. The sales and service center for new and used electric vehicles will also boast on-site financing, insurance, and vehicle registration services, the company said.
The electric vehicles EV hub is designed to be a “focal point for commercial fleet operators and the electric vehicle industry alike,” with MEG headquartering its management, marketing, and admin operations at the site, it added.
The city of Qingdao currently operates an automotive sales and servicing center for a range of vehicle manufacturers at the site, and the company said “these operations are being assumed by MEG” as part of its expanded focus on electric cars. “This will see MEG assume the revenues derived from those activities,” the group added.
Based on 2019 turnover, the existing business is projected to touch one billion renminbi ($144 million) by end-2020, and grow to over 2 billion renminbi ($288 million) by 2021.
It said the successful development of the Mobile Energy Group Center, and the high demand for EV services, has also spurred inquiries from several other cities mulling the establishment of similar EV hubs.
“Where there is financial support to do so, from local governments and manufacturers, and sufficient market demand as we have seen in Qingdao, MEG may decide to develop multiple regional centers in the future,” the company said.
Ideanomics is focused on facilitating the adoption of commercial electric vehicles and developing financial services and fintech products.
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