(Yicai) Oct. 22 -- Shares of Founder Motor jumped after the Chinese firm said it received two long-term orders for drive motors’ core parts for new energy vehicles from Volkswagen Group’s Chinese businesses.

Founder [SHE: 002196] was trading up 4.9 percent st CNY5.11 (72 US cents) as of 1.50 p.m. in Shenzhen today.

Founder will supply over 1.6 million stator and rotor assembly sets for NEV drive motors to Volkswagen's parts factory in Tianjin and SAIC Volkswagen Automotive, the Zhejiang province-based firm announced late yesterday.

The components, which will be used in Volkswagen's new-generation all-electric vehicles, will start delivery in the third quarter and first quarter of next year, respectively, Founder added, without revealing any further details.

The orders will help Founder consolidate and enhance its influence in the industry and improve its business performance, the company noted.

Founder was the world’s largest NEV drive motor supplier in the past three years, with its annual production capacity ranking third after BYD and Tesla, which mostly produce the drive motors for their own vehicles, according to the firm's 2023 financial statement. As of Dec. 31, Founder had shipped a total of nearly 2.6 million NEV drive motors used in more than 40 car models.

Other customers of Founder's NEV drive motors are Li Auto, Xpeng Motors, SAIC, and Geely Automobile Holdings.

Editor: Futura Costaglione