Cheche Group Inc. (NASDAQ:CCG) shares are trading higher after the company announced a partnership with NIO Insurance Broker, a unit of NIO Inc. (NYSE:NIO), as Cheche continues to deepen its collaborations with new energy vehicle (NEV) manufacturers.

Under the deal, Cheche's advanced digital platform aims to streamline NIO's auto insurance process, lower front-end delivery costs, and enhance digital management of their insurance operations.

NIO's tailored digital insurance service system is slated for launch next quarter.

"The global NEV industry continues to experience substantial growth led by the Chinese NEV manufacturers," said Lei Zhang, Founder, CEO, and Chairman of Cheche.

In the first quarter reported last month, Cheche said its partnerships with New Energy Vehicle companies led to 119,000 policies embedded in new New Energy Vehicle deliveries and corresponding written premium of RMB370.3 million with 11 partnerships with NEV manufacturers. This represented an increase of 124.5% and 78.5% compared to the prior-year quarter, respectively.

The latest announcement signifies Cheche's New Energy Vehicle insurance business's significant advancement.

Cheche plans to expand further by securing agreements with additional NEV companies by leveraging strong partnerships with leading Chinese New Energy Vehicle manufacturers.

This expansion will cover new policy issuance, insurance renewals, contract management, claims handling, and risk assessment.

"As a trusted service provider for NEV insurance services, we are committed to creating value for NIO and our other partners throughout the product lifecycle and will strive to retain our standing as the leading intelligent insurance platform for NEVs in China," Zhang added.

Price Action: CCG shares are trading higher by 7.7% to $0.7960 at last check Thursday.

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