U Power and SAIC Motor-CP Collaboration Marks EV Expansion in Thailand

U Power's Groundbreaking Expansion in Thailand

U Power Limited (Nasdaq: UCAR), a company focused on vehicle sourcing services, has taken a significant step forward in the world of electric vehicles (EVs) by entering into a strategic collaboration with SAIC Motor-CP. This agreement marks a pivotal moment for both companies, aiming to enhance the electric vehicle infrastructure in Thailand through innovative battery-swapping technology.

The Partnership Details

On February 3, 2025, U Power announced its cooperation with SAIC Motor-CP, a joint venture between the Chinese automotive group and Thailand's CP Group. The agreement emphasizes the integration of U Power's proprietary battery-swapping technology within SAIC Motor-CP's MG brand vehicles offered in Thailand. This represents a substantial move to streamline EV operations for businesses, particularly in the taxi and ride-hailing sectors.

Under the partnership, U Power plans to customize its existing battery-swapping technology and develop a robust network of swapping stations tailored for the Thai market. This network is expected to be a game changer for commercial fleet operators in Thailand, who will benefit from reduced downtime caused by charging delays. SAIC Motor-CP will contribute technical expertise alongside warranty support for the vehicles.

Addressing Market Needs

The initial focus of this collaboration will center around Thailand's taxi and ride-hailing market, presently boasting over 300,000 vehicles. The vision is to achieve a significant boost in the electrification of these fleets, with predictions of reaching up to 50% electrification within five years. With this ambitious target, U Power's battery-swapping technology promises to provide a practical solution to the pressing charging challenges faced by operators.

Li Jia, Chairman and CEO of U Power, highlighted the significance of this partnership in facilitating the rapid adoption of electric vehicles within Thailand's commercial transport sector. He noted that the anticipated growth in the taxi and ride-hailing fleet electrification demonstrates a clear direction toward sustainable transportation solutions.

“It is essential that we leverage our strengths to innovate and establish a solid foundation for Thailand's transition to electric vehicles,” said Li Jia.

Feng Zhao, President of SAIC Motor-CP, echoed these sentiments, stating that the combined expertise from both companies allows for a comprehensive solution that meets the operational needs of fleet operators. The focus on quick battery swapping, rather than traditional charging methods, is expected to significantly enhance the efficiency and effectiveness of taxi services in Thailand.

The Future of EV in Thailand

The anticipated growth in the electric vehicle sector in Thailand is underpinned by the government’s EV3.5 policy, which aims for an annual growth rate of 30-40% in EV adoption. The collaboration between U Power and SAIC Motor-CP positions both companies to capitalize on this growth trend. As more vehicles are electrified, the need for efficient charging infrastructure becomes imperative. The innovative battery-swapping model not only addresses the immediate charging challenges but also sets a framework that can be replicated in other markets.

U Power’s journey began in 2013, and since then, the company has developed a solid reputation in battery-swapping technology with its UOTTA system—an intelligent modular solution catering to various EV models. Currently, U Power has established a network of sourcing vehicles across China’s lower-tier cities and continues to expand its operations in the EV space.

As U Power and SAIC Motor-CP embark on this ambitious venture, the future of electric vehicles in Thailand appears promising. By enhancing the local infrastructure and developing pioneering solutions for fleet operators, this partnership is poised to redefine the EV landscape in the region.