January 7, 2018 / 3:58 PM / a year ago

China's FAW Car buys 10 percent stake in Mobike's new car-sharing unit

The logo of Faw is seen on the car maker's booth at the 2016 Moscow International Auto Salon in Moscow, Russia, August 24, 2016. REUTERS/Maxim Shemetov

BEIJING (Reuters) - FAW Car Co Ltd (000800.SZ) said on Sunday it was taking a 10 percent stake in Chinese bicycle-sharing startup Mobike’s new car-sharing unit Mobike Chuxing Technology Co.

Mobike Chuxing was set up in December with registered capital of 20 million yuan (2.21 million pounds).

With the strategic investment, FAW will provide electric cars for the project.

FAW, in a statement, said it had signed a deal to buy the stake but did not disclose financial details.

The investment will not have a significant impact on FAW’s earnings. Mobike, whose backers include Tencent (0700.HK) and Sequoia, has 100 million users and supports roughly 25 million rides a day.

Its top competitor, ofo, raised $450 million in May last year from a range of investors, including Chinese ride-sharing service Didi Chuxing.

Reporting by Josephine Mason and Meng Meng; Editing by Susan Fenton

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