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NIO Reportedly Receiving CNY 5 Billion Funding from Huzhou, Government Denies
On October 15th, multiple media outlets reported that NIO is in talks with the government of Wuxing District in Huzhou, Zhejiang Province, to receive over CNY 5 billion in funding. NIO is also planning to build a new energy vehicle factory in Wuxing District, Huzhou.
However, just one day later, relevant departments in Wuxing District clarified in response to media inquiries: “Wuxing District has previously engaged in investment negotiations with NIO and reached a preliminary agreement, but it has been evaluated that the investment risk is too great, and negotiations have been discontinued.”
According to the media reports, NIO and Wuxing District were in talks for funding over CNY 5 billion, and that NIO plans to establish a factory with an annual production capacity of 200,000 vehicles in Wuxing. Coincidentally, on May 28th of this year, NIO also announced that it has signed a framework agreement with Beijing E-Town International Investment & Development Co., Ltd (CITIC), and that the two parties will establish a new entity, NIO China, with CITIC committing to a CNY 10 billion investment. However, as of now, there has been no further action taken to put this financing into effect.
Comment: It is not surprising that many new automotive startups have government investment funds as shareholders. Therefore, this contact between Wuxing District and NIO is not unusual at all. In recent years, Huzhou has favored new energy vehicle manufacturers, and has previously had projects with LeEco Deqing and Youxia Motors Wuxing. But both of these projects have failed. Therefore, it’s not surprising that Huzhou has become so cautious in response to the report of its talks with NIO.
Startup “CHJ Automotive” To Release First SUV with 650km Driving Range
On October 19th, the startup “CHJ Automotive,” a subsidiary of GAC NIO, released a poster for its first SUV, announcing an NEDC range of 650 km, as well as releasing pictures of the exterior and interior of the new car. It is said that the new vehicle is built on the same platform as the Aion LX. Blind booking for this car will open on October 22nd, and it will be officially released by the end of this year, with deliveries to customers starting in the first half of 2020.
Guangzhou Automobile NIO, established in April 2018, is jointly held by Guangzhou Automobile Group, Guangzhou Automobile New Energy, NIO Fund, NIO Automobile, the founding team and employees, and is committed to the research, development, sales and service of intelligent and interconnected new energy vehicles. According to the information released, the total planned investment of Guangzhou Automobile NIO is CNY 1.28 billion, and the registered capital is CNY 500 million. Guangzhou Automobile NIO is not a traditional “joint venture company”, but a “joint-creation company”, which is the origin of the brand name.
Quick Comment: The marketing tricks in the automotive industry are really varied. Now “blind booking” has also come, where the price, size, and even the name of the new car are not yet known. Blind booking is usually a marketing method used by companies or individuals with great brand appeal when launching new products. For a new car manufacturer, the brand trust of users can be almost zero. Adopting this marketing method of blind booking seems to be a deliberate design by manufacturers to be criticized.
NIO unveils 2020 NIO ONE
On October 15th, NIO announced that its first model, the NIO ONE, will be delivered directly as the 2020 model. The 2019 model that has been produced in small quantities will be used for internal digestion. The 2020 model has added practical configurations such as double-layer soundproof privacy glass for the second row, variable intake grille, upgraded Michelin low noise tires, etc.
At the same time, NIO also canceled the armrest on the side of the second row seat next to the door in the 6-seat version. Before this, the double armrest design had been widely promoted as a selling point by NIO, but NIO’s team believed that the double armrest design has certain safety risks and operational inconvenience after long-term use. NIO also claimed that due to the upgrading of the 2020 model, the delivery time will be delayed by one month. The delivery time point previously announced by NIO was November 2019.
However, there are still many users who are opposed to the cancellation of the double armrest design. On the one hand, these users value the experience of the second row double armrest similar to the MPV, and on the other hand, some users feel that the focus should be on mass production rather than modifying the vehicle configuration one month before delivery. In response to this, Li Xiang, the CEO of Ideal Automobile, issued a statement explaining the cancellation of this design. He believes that user safety comes first, followed by functionality. Secondly, they originally planned to implement this series of updates in April 2020, but decided to bring the update forward to the first delivery considering the experience of the first batch of car owners.
Quick comment: Ideal Automobile is a company with a unique approach among China’s new car-making forces. In addition to adopting an energy structure different from other new car-making forces, Ideal Automobile pays special attention to user feedback and opinions, and rapidly optimizes and improves its products. This truly demonstrates the significant difference between Internet and traditional car-making.
GAC New Energy Aion LX launched with a starting price of 249,600 yuan
On October 17th, GAC New Energy held a launch event in Shanghai, officially announcing the release of the high-end pure electric vehicle Aion LX, which has been in development for six months. A total of 5 models were launched this time:
- Aion LX 60 with a NEDC range of 503 km, priced at 249,600 yuan
- Aion LX 70 with a NEDC range of 520 km, priced at 259,600 yuan
- Aion LX 80 with a NEDC range of 650 km, priced at 279,600 yuan
- Aion LX 80D with a NEDC range of 600 km, priced at 299,600 yuan
- Aion LX 80D MAX with a NEDC range of 600 km, priced at 349,600 yuan
The body size of the Aion LX is 478619351685mm, with a wheelbase of 2920mm. It is a true mid-size SUV. The 80-version of the vehicle has achieved a NEDC of 650 km, and the 80D Max model has a 0-100 km/h acceleration of 3.9 seconds. Additionally, L2 or L3 level auxiliary driving can be optional. In terms of data, Aion LX is quite powerful.> Quick Review: Guangzhou Automobile Group (GAC) became a rising star among Chinese car brands in the past few years thanks to its reputation-driven models such as GS4 and GS8, but has recently faced increasing competition pressure from its rivals. Its latest release, the Aion S all-electric car, didn’t quite make a splash in the market. Now it’s time for GAC to make a debut in the SUV market, where it excels. Despite less-than-stellar marketing, the parameters of this new model are quite impressive. Will consumers buy it? Time will tell.
Volvo announces the release of the XC40 all-electric version
On October 16th, Volvo announced the release of its first all-electric car, the XC40, at Los Angeles Auto Show. The XC40 was named the European Car of the Year in 2018, and the all-electric version excels in safety performance and other aspects.
The all-electric XC40 has been designed with safety features specifically for electric cars. Volvo installed the battery pack in the center of the vehicle floor and designed protective cages and crumple zones to ensure the battery’s safety during collisions. Additionally, Volvo strengthened the front and rear of the vehicle. As for the release in China, the official statement has yet to be announced.
Basic information of the all-electric XC40:
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Battery capacity: 78 kWh (usable capacity – 75 kWh)
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Power: 304 kW
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Torque: 660 N·m
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Acceleration time (0-100 km/h): 4.9 s
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DC fast charging: 150 kW (only takes 40 minutes to charge 0-80%)
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Drive type: all wheel drive
Quick Review: Volvo’s first move into electric vehicles is by transforming its most highly acclaimed XC40 model in Europe. With moderate pricing, long driving range and increased safety features, I believe this all-electric version will perform well in the European market.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.