Cheche Group Inc, a significant player in China’s auto insurance technology sector, has announced a new strategic partnership with Shanghai Jidu Automobile Company Limited (JI YUE).
This collaboration is aimed at furthering Cheche’s involvement in the growing new energy vehicle (NEV) market.
JI YUE is a joint venture formed by Baidu and Geely, focusing on developing autonomous NEVs and related artificial intelligence (AI) technologies. The company aims to lead in integrating AI into vehicle manufacturing processes.
Through the partnership, Cheche has rolled out a tailored system designed for JI YUE, allowing consumers to purchase both auto and non-auto insurance products via digital and offline channels.
This system is linked with Cheche’s core platform and aims to improve JI YUE’s sales efforts while also enhancing its account settlement processes.
Lei Zhang, Cheche’s founder, CEO, and chairman, said the agreement with JI YUE enables the company to further expand in the NEV industry and solidify its leadership as a tech-driven insurance platform.
“We are thrilled to announce our latest partnership with JI YUE,” he said.
Zhang said that the collaboration will enable Cheche to provide a comprehensive insurance platform for JI YUE customers and explore future opportunities in autonomous vehicle insurance.
“We also intend to capitalise on JI YUE’s highly regarded innovations in intelligent driving by collaborating on future autonomous driving insurance projects with them,” he said.
In addition to the JI YUE partnership, Cheche recently announced another strategic move by partnering with Dongfeng Insurance, the insurance arm of Dongfeng Motor Group.
This partnership will initially focus on providing insurance services for VOYAH, Dongfeng’s premium NEV brand. Cheche will offer a range of insurance solutions across VOYAH’s extensive network of over 900 outlets nationwide.
According to Zhang, this alliance with Dongfeng Insurance provides Cheche with new growth avenues as China’s NEV market continues to expand rapidly.
Cheche’s recent initiatives align with global trends in the hybrid and electric vehicle market.
According to HTF Market Intelligence, the global market for hybrid and electric vehicle (EV) insurance is expected to grow at a compound annual growth rate (CAGR) of 16.88% by 2030.
This growth is being driven by the increasing demand for specialised insurance products tailored to EVs and hybrids, which present unique risks such as higher battery replacement costs and limited charging infrastructure.
The HTF report also highlighted challenges within this market, including the high cost of repairs for critical components like batteries and electric drivetrains, which contribute to higher premiums for EV insurance. These elevated costs could potentially slow down consumer adoption of specialised insurance products for EVs.
Nevertheless, the growing shift toward sustainable transportation is creating new opportunities for insurers to introduce products that address the specific needs of EV and hybrid vehicle owners.
