Gonow Auto to sell cars via Gome appliance stores

Shanghai, May 7 (Gasgoo.com) Chinese minicar maker Zhejiang Gonow Auto Co., Ltd. has recently inked a strategic deal with Gome Electrical Appliances Co., Ltd. to sell vehicles via the Gome stores, and in return the largest Chinese retailer of electrical appliances is likely to make cars jointly with Gonow, sina.com said today.

It is the Chinese government's recently launched "home appliances to the countryside" and "vehicles to the countryside" programs that have brought the two companies together. Earlier this year, China released incentives and subsidies to stimulate domestic market demand and the countryside is a vast market. Under their strategic deal, Gonow and Gome will share each other's outlets nationwide.

Gome Electrical Appliances Co is one of China's largest chain companies retailing electrical appliances and other home appliances, with nearly one thousand stores in more than 240 cities across the country. Through Gome's expensive and strong sales network, the little-known Gonow mini vehicles will come closer to larger customer groups. Meanwhile, Gonow dealerships will also sell appliances for Gome.

While sharing the sales networks, the automaker and appliance retailer are also likely to make vehicles jointly in the future for further and deeper partnership, though neither company has confirmed this possibility yet. Sources said that both sides seem to be in talks over some details of their car-making joint venture.

Auto industry insiders noted that Gome has foreseen the market potentials of Gonow Auto, especially in the vast rural areas which will have huge demands for mini vehicles. On the other hand, the Gonow brand will gain popularity though Gome's widespread sales network. This may be a great win-win deal.

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