Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Chinese Version   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home Email this story   Print this story
 
SoftBank's Vision Fund in talks to invest $1.5B in China used-car platform
Reuters | 2019/2/5

HONG KONG -- The SoftBank-led Vision Fund is in talks to invest up to $1.5 billion (10.12 billion yuan) in Chinese used car trading platform Guazi.com, two people with knowledge of the matter said.

That would mark the latest Chinese deal by the mammoth $100 billion investment fund as it looks to expand in the world's No. 2 economy, and would come after it invested 460 million euros (3.55 billion yuan) in German used-car dealing platform Auto1.

The fund is likely to invest up to $1.5 billion in Guazi in a deal that would value the firm at $8.5 billion before the investment, according to one of the sources, who had direct knowledge of the situation.

The two sources, who were not authorized to speak to media, also said the Vision Fund had in the past few months held talks with Guazi's direct rival, Renrenche, which is backed by Chinese ride-hailing firm Didi Chuxing.

Guazi, a consumer-to-consumer used car trading platform founded in 2014, is backed by Chinese internet giant Tencent and Sequoia Capital China. Its talks with Softbank were first reported by   the Financial Times   late on Friday.

The Vision Fund and Renrenche declined to comment. Guazi did not respond to a request for comment. Japan's Softbank was not immediately available for comment.

The Vision Fund, the world's largest private equity fund after raising more than $93 billion in 2017, has previously made investments in firms such as ride-hailing company Uber Technologies Inc and shared-office space firm WeWork.

China's used car market has continued to grow even as overall auto sales declined last year for the first time since the 1990s.

Used sales rose 11.5 percent in 2018 from the year before to 13.82 million vehicles. The total value of these transactions was 860.4 billion yuan ($127.61 billion), according to the China Automobile Dealers Association.

China's state planner has said the country would aim to loosen restrictions on the second-hand auto market, with "appropriate" subsidies provided to boost rural sales of some vehicles.


Related Stories
  • Used-vehicle deliveries rise 11% in 2018 on strength of crossovers, SUVs
  •     --Published:2019/15/2
     
  • Used-vehicle sales advance 13% in first half
  •     --Published:2018/3/8
     
  • Used vehicles in China remain a challenging market to play
  •     --Published:2018/29/6
     
  • How Beijing can fix China's fragmented used-car market
  •     --Published:2017/8/9
     
  • Used-vehicle sales rise 22% in 1st quarter
  •     --Published:2017/19/5
     
  • China to energize used-car market to spur new-vehicle sales
  •     --Published:2017/24/3
     
  • Used-vehicle sales expected to jump 20% in 2017
  •     --Published:2017/10/2
     
  • Used-vehicle deliveries rise 4% in first half
  •     --Published:2016/16/8
     
  • 58.com to spin off used-car sales website to raise cash
  •     --Published:2015/1/12
     
  • Used-vehicle deliveries advance 5.8% in first half
  •     --Published:2015/14/8
     
  • Volvo opens certified used-car business in China
  •     --Published:2015/17/3
     
  • Audi's China dealerships take in 80,742 trade-ins from customers in 2014
  •     --Published:2015/20/2
     
  • Used-vehicle sales rise 16% in 2014
  •     --Published:2015/10/2
       
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     
     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    ICP06057291