Auto-insurance provider and intermediator, SunCar Technology Group (NASDAQ:SDA) announced Friday that it has launched an online insurance solution for Li Auto (NASDAQ:LI) electric vehicle drivers.
Available through the Li Auto car owners' app, SunCar now provides a range of online insurance options, such as H5 on mobile, enabling car owners to swiftly and conveniently compare and buy auto insurance and other related services.
SunCar CEO, Ye Zaichang commented, “We are very pleased to announce this deal with Li Auto, one of the largest NEV manufacturers in China.”
“SunCar has always been committed to solving substantive problems for customers with industry-leading products and services. Although there are many auto insurance options for drivers, including SunCar’s insurance offerings in the Li Auto app should make it the default choice for all Li Auto customers,” he added.
SunCar leads in after-sales services in the NEV industry with a widespread service supplier network. China has the world's biggest car market, projected to grow by 11% annually (2017-2023E).
By expanding its auto insurance options, the company anticipates business growth and synergy with its current online automotive services. Regular insurance renewals will generate more returning users for SunCar, ensuring a stable, subscription-based revenue stream in the future.
Li Auto, a prominent player in China’s EV sector, specializes in high-end intelligent electric vehicles. The company stands as a pioneer in the successful commercialization of extended-range electric vehicles in China, having commenced mass production in November 2019.
LI’s lineup includes the Li L9, a six-seat flagship family SUV, the Li L8, a six-seat premium family SUV, and the Li L7, a five-seat flagship family SUV.
Shares of SDA are up 4.31% while LI trades 1.88% in mid-day trading on Friday.