Ideanomics’ MEG Secures 35,000 EV Taxis Order in China

Ideanomics’ MEG has secured an order for 35,000 EV Taxis from the Yunnan Energy Investment Group in China.

Ideanomics, a global financial technology company has announced that it’s Mobile Energy Global (MEG) division has secured an order for 35,000 Electric Vehicle (EV) taxis from the Yunnan Energy Investment Group, which is a province-designated entity for clean energy transportation solutions in China.

The order was signed as part of broader cooperation with Yunnan Energy, which will start with EV taxis and develop into other vehicles’ orders and also energy purchasing and charging. Delivery of the EV taxis will commence in the first half of 2020. China has been encouraging its provincial governments to adopt blue sky environmental regulations that support the adoption of clean energy vehicles, particularly those with high energy usage such as the commercial vehicle sector.

Alf Poor, CEO of Ideanomics said that this is an important agreement for MEG to secure, as it demonstrates its ability to secure meaningful orders in other provinces. This follows on from its deal in Sichuan Province, where it’s already delivering EV taxis for the city of Chengdu.

“Our S2F2C model is proving to be a compelling proposition for both legislators and commercial vehicle operators, as MEG expands its manufacturing alliance and financial solutions to meet the needs of an evolving market. Due to our comprehensive role in marketing, procuring, financing, delivering and managing and maintaining all the data associated with the vehicles, MEG expects to recognise the total sale value of the vehicles as revenue as the taxis are delivered and accepted by the Province,” he said.

Taxis are an important part of the transportation system in China, where its largest cities rely heavily upon them for helping the population navigate the dense traffic congestion of urban areas. Legislators in China have been quick to identify taxis as a significant segment of fossil fuel consumption and have encouraged regional taxi commissions and their licensed operators to convert over to electric vehicles through a mixture of legislation and rebate incentives.

Taxis are one of the four key revenue segments for MEG, which is also developing innovative umbrella financing solutions to help streamline the adoption of EV by commercial fleet operators.