The History of Modern Auto

The Chinese EV Startup and Its Manufacturing Partnership with Beijing Automobile Works (BAW)

Modern Auto is one of the newer entrants in China’s rapidly expanding electric vehicle (EV) industry. Founded in 2019, the Shanghai-based startup was established to create stylish, technology-oriented electric vehicles for younger urban buyers. Unlike many traditional automobile manufacturers, Modern Auto chose an asset-light business model by outsourcing vehicle production rather than constructing its own assembly plants. This strategy led to a manufacturing partnership with Beijing Automobile Works (BAW), which builds Modern Auto’s vehicles under contract while the startup focuses on vehicle design, engineering, branding, and marketing.

Founding and Early Development (2019–Present)

Modern Auto was founded in 2019 by Liu Xin, an automotive executive who previously worked for SAIC Motor, one of China’s largest state-owned automobile manufacturers. Liu’s experience at SAIC provided him with extensive knowledge of vehicle development and the Chinese automotive market, and he assembled a management team that also included numerous former SAIC employees. The company’s headquarters were established in Shanghai, China’s largest commercial city and an important center for automotive engineering and technology development.

Unlike many EV startups that attempted to become fully integrated automobile manufacturers, Modern Auto adopted a different strategy. Since it did not possess China’s required automobile manufacturing license, the company partnered with Beijing Automobile Works (BAW) to manufacture its vehicles. Under this arrangement, Modern Auto retained responsibility for product planning, engineering, design, software development, and marketing, while BAW supplied the production facilities and manufacturing expertise necessary to build the vehicles. This contract-manufacturing relationship allowed Modern Auto to enter the market without investing billions of dollars in constructing its own factories.

Importantly, publicly available information indicates that BAW serves as Modern Auto’s manufacturing partner rather than its owner. There is no reliable evidence that BAW acquired Modern Auto or that the companies merged. Instead, their relationship resembles the contract manufacturing arrangements used by several other Chinese EV startups.

Company Philosophy

Modern Auto was created to appeal primarily to younger drivers living in major Chinese cities. The company’s branding emphasizes modern lifestyles, connectivity, technology, and minimalist styling. Marketing materials have featured street art, music, urban culture, and contemporary graphic design intended to differentiate the company from more conservative automobile manufacturers. Even the company’s stylized “M” logo reportedly drew inspiration from the classic video game Tetris, reinforcing its youthful image.

Rather than competing directly with luxury EV manufacturers, Modern Auto positioned itself in the affordable-to-mid-priced electric crossover market, where demand has grown rapidly in China.

The Relationship with Beijing Automobile Works (BAW)

The relationship between Modern Auto and Beijing Automobile Works has been fundamental to the startup’s existence. Because Modern Auto lacks its own production license and manufacturing facilities, BAW builds the company’s production vehicles.

This arrangement allows each company to specialize in its strengths. Modern Auto concentrates on:

• Vehicle design
• Product engineering
• Software development
• Brand management
• Marketing
• Customer experience

Meanwhile, BAW provides:

• Vehicle assembly
• Manufacturing expertise
• Production quality control
• Factory operations
• Supply chain management for vehicle production

This division of responsibilities significantly reduced Modern Auto’s startup costs and shortened the time required to bring its first vehicle to market.

Vehicle Lineup

Modern Auto’s first production vehicle was the Modern In, an all-electric compact crossover SUV introduced in 2021. The vehicle featured clean exterior styling, flush door handles, a minimalist interior, and battery-electric power. It was offered with multiple battery options designed to appeal to different customer budgets and driving requirements.

The company later began developing a larger crossover known as the MD12, intended to compete in China’s increasingly competitive midsize electric SUV segment. The MD12 was positioned against vehicles such as the Tesla Model Y while continuing Modern Auto’s emphasis on contemporary styling and connected technology.

Although the Modern In remains the company’s best-known and most significant production model, comprehensive production totals and verified worldwide sales figures have not been publicly released.

Factory Operations

Modern Auto differs from traditional automobile manufacturers because it does not operate its own large-scale vehicle assembly plants. Instead, production is handled by Beijing Automobile Works under a contract manufacturing agreement.

Under this system, vehicle engineering and product planning originate with Modern Auto, while BAW assembles completed vehicles in its manufacturing facilities using established automotive production processes. This model allows Modern Auto to remain relatively lean while benefiting from BAW’s decades of manufacturing experience.

Marketing and Business Expansion

Modern Auto’s marketing strategy has consistently targeted younger, technology-oriented consumers. Promotional materials emphasize individuality, digital lifestyles, and urban mobility instead of traditional luxury or performance themes.

In 2022, the company expanded beyond vehicle sales by introducing Modern Trip, a ride-hailing service. The new business used fleets of Modern In electric crossovers and initially launched in Hangzhou before plans for expansion into additional Chinese cities. The initiative represented an effort to diversify revenue while increasing public exposure for the company’s vehicles.

Challenges

Like many EV startups established during China’s electric vehicle boom, Modern Auto entered an intensely competitive marketplace filled with both established automakers and numerous startup rivals.

Its greatest structural challenge has been operating without its own manufacturing license, making the company dependent upon BAW for production. While this approach reduced capital costs, it also meant Modern Auto had less direct control over manufacturing capacity than vertically integrated competitors.

Additionally, the company has faced competition from much larger manufacturers, including Tesla and rapidly growing Chinese EV brands with significantly greater financial resources and broader product portfolios. Publicly available information does not indicate that Modern Auto has experienced bankruptcy, major recalls, or corporate restructuring, although competition remains intense.

Racing Programs

There is no evidence that Modern Auto has participated in professional automobile racing, factory motorsports programs, or internationally recognized racing series. Instead, the company has focused its resources on developing consumer electric vehicles and expanding its presence in the Chinese EV marketplace.

U.S. Consumer Reception

Modern Auto has not officially entered the United States market. Consequently, there are no verified U.S. sales figures, dealer networks, or meaningful measures of American consumer reception. The company’s activities remain focused primarily on China, with discussions of possible future exports rather than established North American operations.

Sales Figures

Reliable sales statistics for Modern Auto have not been publicly disclosed. Likewise, there are no verified global cumulative sales totals or U.S. sales figures available through public sources. Because the company primarily serves the Chinese domestic market, comprehensive production and delivery data remain limited.

Milestones and Accomplishments

Despite its relatively short history, Modern Auto has achieved several noteworthy milestones:

• Founded in Shanghai in 2019.
• Successfully established a contract manufacturing partnership with Beijing Automobile Works.
• Introduced the Modern In, its first production electric crossover.
• Expanded development with the larger MD12 crossover.
• Launched the Modern Trip ride-hailing platform to complement vehicle sales.
• Built an experienced management team largely composed of former SAIC executives.

Current Status and Outlook

As of 2026, Modern Auto continues to operate as a privately held Chinese electric vehicle startup. The company remains headquartered in Shanghai and continues relying on Beijing Automobile Works as its contract manufacturer rather than operating its own production facilities. There is no reliable evidence that the company has ceased operations, merged with another automaker, or been acquired.

The company’s long-term success will likely depend on its ability to compete in China’s crowded EV market, introduce additional competitive products, and continue leveraging its partnership with BAW to keep manufacturing costs under control. While Modern Auto remains much smaller than China’s largest EV manufacturers, its contract manufacturing strategy illustrates one of several approaches used by emerging automakers seeking to enter the rapidly evolving electric vehicle industry.