SAIC Motor Corp. is planning a recent spherical of fundraising for its mobility service platform Xiangdao Chuxing, in keeping with individuals acquainted with the matter, because it seeks to remain aggressive amid shifts within the automotive business.

China’s largest carmaker, which counts Volkswagen AG and Basic Motors as companions, goals to lift as a lot as $157 million, one of many individuals mentioned. The plan is not finalized, however SAIC might announce it as quickly as this month, the individuals mentioned, asking to not be recognized as a result of the main points aren’t public.

Based in 2018, Xiangdao presents ride-hailing and car-rental companies. The corporate mentioned it had 26 million registered clients final yr and greater than 2,200 company purchasers. Xiangdao’s backers embody Alibaba Group Holding Ltd. and Chinese language electric-vehicle battery large Up to date Amperex Know-how Co. Ltd., which each contributed to a $47 million fundraising spherical final yr.

A consultant for SAIC declined to remark.

The brand new fundraising plan comes as Chinese language ride-hailing market chief Didi World Inc. faces strain from the federal government after it went via with a $4.4 billion itemizing within the U.S. in June regardless of pushback from Beijing. It has been advised to plot a plan to delist, Bloomberg reported in November.

Different automakers together with Zhejiang Geely Holding Group Co. and China FAW Group Co. are additionally venturing into mobility companies in China, a market estimated to be price about $35 billion in 2020, in keeping with the State Data Heart.

Geely’s Cao Cao Mobility division raised nearly $600 million in September and has been in talks with buyers for an additional funding spherical subsequent yr, in keeping with Gong Xin, the unit’s chief govt officer.