By Li Panpan

(JW Insights) Sep 14 -- Chinese used car dealer Kaixin Auto Holdings signed a non-binding agreement to fully acquire WM Motor by issuing new shares, announced the Beijing-based buyer on September 11, without disclosing further details.

Founded in 2015, Kaixin Auto is one of the leading dealership networks in the premium used car segment and new car sales in China. It was listed in New York in May 2019, becoming the second Chinese used car firm to do so after Uxin Group.

Founded in 2015, Kaixin Auto is one of the leading dealership networks in the premium used car segment and new car sales in China. It was listed in New York in May 2019, becoming the second Chinese used car firm to do so after Uxin Group.

"WM Motor's fashion technology product positioning and branding matched well with Kaixin's strategic development goals," said Lin Mingjun, the dealer's chairman and chief executive. "Through the intended acquisition, WM Motor will gain access to more capital support to enhance the development of its smart mobility business."

WM Motor had planned to go public via a reverse merger with the Hong Kong-listed arm of Apollo Future Mobility Group, but the latter said on September 8 that the deal had been dropped for several reasons, including global stock market turbulence, geopolitical conflicts, and financial market uncertainty, reported Yicai Global on September 12.

In 2021, Kaixin Auto set up a new energy vehicle department with research, development, production, and marketing teams. In August, it bought all the assets and business operations of low-speed EV maker Henan Yujie Shidai Car and its brand Pocco EV.

Once one of China's most promising EV startups, Shanghai-based WM Motor gradually fell behind the competition in the country's fierce auto market. This year, it has faced factory closures, employee salary cuts, property fee arrears, and dealer withdrawals, according to the Yicai Global report.