• Deutsche Postsubsidiary StreetScooter and automobile manufacturer Chery Holding Group signMemorandum of Understanding (MoU) to begin local production, sourcing anddevelopment of last-mile electric light commercial vehicles (eLCV) speciallytailored to the Chinese market and potentially selected other countries
• The MoU is part of aneconomic agreement reached during German Chancellor Angela Merkel's trip toChina
• China and ASEAN regionof major strategic significance for StreetScooter, offering opportunities forhigh volumes, in-country value creation and technological collaboration
• Perspective totalinvestment up to 500 million Euro amount
• Mass productionplanned for 2021 with production capacities of up to 100,000 electric vehiclesper annum

BEIJING,CHINA / AACHEN, GERMANY - Media OutReach - September 6, 2019 - StreetScooter GmbH, a subsidiary ofDeutsche Post and market leader for electric light commercial vehicles (eLCV),has signed a memorandum of understanding (MoU) with the Chinese automobilemanufacturer Chery Holding Group (Chery). The agreement establishing a joint venturebetween the two companies was reached during German Chancellor Angela Merkel'strip to China. Chery is one of China'sleading automobile manufacturers, with a 20% market share in electriccommercial vehicles sector. Chery is expanding its scope of mobilitywithin the high promising segment of light cargo electric vehicles and microe-mobility solution.

The memorandum was signed by StreetScooter CEO JörgSommer and Chairman of the Board of CheryHoldings Co., Ltd., Yin Tongyue, in the presence of the heads of both the Germanand Chinese governments in the Great Hall of the People in Beijing.

The two companies planto develop an electric light utility vehicle for the international marketin selected countries. The project will include local manufacturing and sourcingas well as nationwide sales and service. As outlined in the memorandum, theentry of electric light commercial vehicles into the Chinese market will begradual. Mass production is scheduled to begin in 2021 with productioncapacities of up to 100,000 electric vehicles per year.

The market entry ofStreetScooter in China continues the internationalization of the company afterthe strategic cooperation with the Japanese logistics company Yamato.

"This production andsales agreement is a major milestone in our company's, as yet, short history,"said Jörg Sommer, CEO of StreetScooter GmbH. "We're thrilled about the upcomingcollaboration with our partner Chery and this opportunity to open up theworld's largest market for electric light commercial vehicles, introduce ourenergy, logistics and fleet solutions and create a local source of valuecreation. StreetScooter now has a commercial presence in Japan and China, thetwo most important national economies in Asia."

Yin Tongyue, Chairman of Chery Holding Groupoutlines the strategic importance: "The strong cooperation between Chery andStreetScooter will create opportunities for both parties to explore the globalmarket, especially in the EU and China. It will also help Chery to furtheraccelerate the development of innovative solutions based on new energy andsmart interconnection and therefore surpass traditional fuel vehicles. Cherywill actively integrate the global unique resources and know-how through opencooperation and customer centric unique-selling-propositions and offerings."

The joint venture alsoaims to establish a location for research and development in China, focusing ondeveloping eLCV components, technology, vehicle architecture and design,autonomous logistics and energy solutions.

The Chinese market forlight commercial vehicles is expected to reach 2.3 million trucks by 2025, over900,000 of which are forecast to be electric. Such rapid growth will make Chinathe largest market in the world for electric vehicles of this kind, followed byEurope and the USA. Market growth is being driven by numerous factors:Urbanization, rising transport volumes in downtown delivery traffic (lastmile), related municipal rules and regulations on vehicle emissions, and newmobility, logistics and energy solutions. Major sales potential for the soon-to-bejointly produced electric vehicles will be offered by a regionally tailored andhomologated version of the StreetScooter products and services.The new joint venture intends to target major fleet operators in the areas oflast-mile delivery and e-commerce as potential customers.

About StreetScooter GmbH

StreetScooteris a global innovation leader/ first mover in the field of electrically poweredcommercial vehicles based in Germany and was fully acquired by Deutsche PostDHL Group in 2014. The company is currently the market leader with more than12,000 vehicles in daily use and has a track record of over 100 millionkilometers driven and 36,000 tons of CO2 savings. StreetScooter has alsoelectrified more than 700 depots and installed more than 11,000 charging pointsfor small and large fleet operators. The company is transforming itself from anelectric vehicle manufacturer into one of the leading global energy andlogistics platforms for the last mile.

AboutChery Holding Co., Ltd.

CheryHolding Co., Ltd. was established in 2010, a group company based on the automotive industry, with co-development ofthe auto parts production and R&D, financial investment, service trade,ship, traveling & real estate. Chery has sold almost 8 million passengervehicles. At the same time, Chery has exported more than 1.5 million units,ranking No. 1 in exporting Chinese passenger vehicles for 16 consecutive years.