Nio will provide delivery services for orders of the first Hycan-branded electric vehicle model, part of the NEV maker’s joint venture with state-owned partner GAC Group. Shipments will start in the first half of next year.
Why it matters: The role suggests that Nio is becoming more involved in its GAC partnership. This would serve as another chance for the embattled EV maker to forge out new revenue streams as it deals with capital-intensive sales and service operations.
Details: From April 2020, Nio will offer complete delivery services for the first all-electric crossover model from Hycan, according to a statement on Thursday.
- Services provided include but are not limited to warehousing, logistics and license registration for customers. The firm will also open its valet charging service to Hycan owners.
- A spokeswoman on Friday declined to comment on if and how much of a cut Nio will take from each sale of the first Hycan model.
- Nio formed the RMB 1.3 billion JV with GAC, southern China’s largest carmaker, in April 2018. The unit’s CEO is Liao Bing, a former assistant to the president of GAC’s research and development center.
- Hycan’s launch followed the JV forming in May this year with the debut of a concept car in Hangzhou. There were plans for a mass-market roll-out by the year-end.
- Pre-sales (with refundable deposits) of its first mass-produced electric SUV began on Oct. 22, with an above-average NEDC range of 650 kilometers (roughly 400 miles) and a rumored price of around RMB 200,000 ($28,400).
- Although the exact price and model name were not initially revealed, the JV racked up 1,000 sign-ups in just three days.
- The SUV model, to be delivered during the first half of 2020, will be developed and produced at a GAC EV plant, while Nio will lead smart connectivity and offer charging infrastructure and services.
Context: The development comes one month after Nio revealed plans to open 200 Nio Spaces, smaller and more “cost-effective” sales offices compared with flagship Nio Houses, in 100 Chinese cities by the year-end, revealed the then-CFO Louis Hsieh at the second-quarter earnings call.
- Nio is taking a series of measures to improve efficiency amid huge losses and cash flow constraints.