(Yicai Global) Feb. 22 -- The parent company of China’s Juneyao Airlines plans to debut its first electric car after taking control of new energy vehicle startup Yudo Auto last year.

Juneyao Group will launch an electric sports utility vehicle, the Yuntu, on Feb. 28, Wang Junjin, chairman of the Shanghai-based firm, told the media yesterday. It will offer two models with a cruising range of 320 kilometers and 415 km, respectively, priced at CNY90,000 and CNY100,000 (USD13,060 and USD14,515) each, he added.

In June last year, Juneyao and the Putian State-owned Assets Supervision and Administration Commission in Fujian province jointly invested in Zhuhai Yucheng Investment Center, which owns 85 percent of Yudo Auto. The size of Juneyao’s stake is unknown.

Juneyo aims to cover the two major travel industries of air and road through Juneyao Air and Yudo Auto, Wang said. It also plans to expand in the auto services field, including special car services, short-term rental services, and timeshare leases, he noted.

The group began to develop its NEV business in 2021, from expanding its talent pool to building a research and development center, Wang added. The competition among NEV startups is fierce, but the industry has stopped 'burning' through money and become more rational, with firms needing to spend less when exploring the sector, he pointed out.

Founded in 2015, Fujian province-based Yudo Auto lost CNY95 million (USD13.8 million) in 2017, CNY138 million (USD20 million) a year later, CNY177 million in 2019, and CNY213 million last year. But it sold 9,300 cars in 2018, ranking second among Chinese NEV startups after Nio.

Juneyao Air and its parent company's financial segment will continue to increase support for Yudo Auto, Wang said.

Editor: Martin Kadiev