In a significant move to enhance the adoption of new energy vehicles (NEVs), Chinese automotive giant BYD has entered into a strategic cooperation agreement with CAR, the largest car rental platform in the country. This partnership aims to leverage the growing demand for greener mobility solutions as China continues to evolve its transportation landscape.

The formal agreement was signed on Monday at BYD's headquarters located in Shenzhen, Guangdong province. Central to this cooperation is a comprehensive vehicle procurement plan that targets the peak demand anticipated during the summer vacation season of 2025. This initiative builds upon their initial partnership established in April, demonstrating a mutual commitment to advancing sustainable transportation.

As part of this collaboration, CAR is set to increase its fleet with a larger number of BYD vehicles, featuring popular models such as the Qin PLUS DM-i plug-in hybrid and the newly released Fang Cheng Bao Bao 8 SUV. This decision is particularly strategic, following positive market responses during the May Day holiday when the initial fleet of vehicles was rolled out.

The integration of these NEVs into rental services has highlighted their appealing smart features and comfortable driving experience, thereby enhancing the attractiveness of electric vehicles in the rental market. Both companies assert that this shift not only provides customers with desirable options but also positions NEVs as viable alternatives within the mobility sector.

Beyond vehicle procurement, the partnership will encompass various collaborative efforts across operations, marketing strategies, and data integration processes. Additionally, there will be a focus on managing used cars effectively, which is crucial for establishing a sustainable business model in the rental industry.

To optimize fleet operations and improve customer engagement, BYD and CAR plan to co-develop innovative digital tools. These initiatives will include enhanced test-drive programs and co-branded advertising campaigns, alongside exploring new resale models for retired rental vehicles, promoting a circular economy approach.

CAR's expansive operation currently includes a fleet of 160,000 vehicles and caters to over 1.75 million registered users in more than 300 cities across China. This scale positions them uniquely to influence the rental market towards a greater acceptance and reliance on NEVs.

The collaboration between BYD and CAR aims not only at increasing the prevalence of NEVs in rental services but also at setting a benchmark for the mobility sector. By standardizing the use of green vehicles, they intend to showcase an end-to-end model that exemplifies how these vehicles can be effectively deployed, maintained, and monetized.

In light of China's ambitious 'dual carbon' goals—aiming for peak emissions by 2030 and carbon neutrality by 2060—this partnership is set to play a critical role. Both BYD and CAR are determined to utilize their strengths in technology, operations, and market presence to enhance consumer access to intelligent vehicle options and smarter travel experiences.