Volkswagen Group China and eHi Car Services Limited, a car rental and car services provider in China, have signed a Memorandum of Understanding to jointly explore luxury mobility-on-demand services in China.

Both parties will leverage technologies, developing mobile internet and car connectivity to provide luxury mobile services to Chinese consumers, according to eHi Car Services.Currently, mobile devices and Internet connectivity have enabled innovations in China's mobility services market.

To address the market potential, a partnership will be formed which combines the strengths of Volkswagen and eHi's mobility services in China, where it operates about 60,000 vehicles from more than 4,000 directly managed service locations in more than 250 cities.

"Volkswagen Group China understands the various needs for new mobility and sees clearly the trend of the transportation-on-demand business,” said Jochem Heizmann, member of the board of management of Volkswagen Aktiengesellschaft and president and CEO of Volkswagen Group China. “This is the latest example of our strategy to work with outstanding Chinese companies to develop innovative concepts that can advance new mobility-on-demand services in China and provide well-matched mobility services solutions to customers."

"China is facing a historic opportunity from consumption upgrade and economic transformation,” said Ray Zhang, eHi's chairman and CEO. “At the same time, new mobility services are an essential part of the sharing economy, which is becoming more popular for hundreds of millions of Chinese consumers. We believe this cooperation with Volkswagen Group China will add an important new level to mobility services and support the ongoing development of China's mobility services sector."