GAC-NIO’s 1st EV Hycan 007 Spotted in China’s EV Subsidy Plan

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Recently, China MIIT(Ministry of Industry and Information Technology) announced the “Catalogue of Recommended Vehicles for the Promotion and Application of New Energy Vehicles” (Second batch in 2020). The catalogue shows that GAC-NIO’s first model, HYCAN 007, is listed, becoming the EV that meets the technical requirements of products for Chinese new energy vehicle financial subsidy policy, indicating that on purchasing HYCAN 007 the customers can enjoy the new energy subsidy and tax exemption as per the China’s policy and will be exempted from the restriction on the purchase policy.


GAC-NIO's 1st EV Hycan 007 Spotted in China's EV Subsidy Plan

As the first EV of GAC-NIO, HYCAN 007 has many highlights in terms of the product strength. It is reported that the battery energy density of the two models reaches 171.00Wh/kg, and the PLUS and TOP versions reach 180.00Wh/kg. Supported by a battery density and a 135KW three-in-one motor (permanent magnet/synchronous), the power consumption of the BASE version is 15.9kWh/100km, for the PLUS and TOP versions, it is only 16.7kWh/100km. The three versions have peak torques of 350 Nm and a maximum speed of 170 km/h.

In addition, the HYCAN 007 is equipped with a human-car intelligent interactive robot as per the standards. It is equipped with a shuttle tri-body screen (12.3 inches + 12.3 inches + 10.1 inches). The machine system, multi-function power matrix function, etc., will improve the convenience of users’ travel life.

GAC-NIO's 1st EV Hycan 007 Spotted in China's EV Subsidy Plan
Hycan 007, GAC-NIO’s first EV, listed in China’s EV subsidy plan in 2020

As a JV established less than two years in China, it was not easy for GAC-NIO to enter the subsidy list. On April 10, 2018, GAC Group, GAC New Energy, NIO Fund, NIO Automobile and the founding team jointly funded the establishment of GAC-NIO New Energy Automobile Technology Company Ltd. The company is mainly engaged in the research and development, sales and service of pure electric vehicles. At the same time, it carries out cooperation in the upstream and downstream of the industrial chain, involving the research and development of new energy vehicles, sales services, and lease operations.

As a joint venture between GAC Group and the new carmaker NIO Automobile, GAC-NIO “takes its own strengths”, integrates and revitalizes the resources of both parties, and will launch the first model HYCAN in only two years. The development of GAC-NIO is inseparable from the support of GAC and NIO.

GAC-NIO's 1st EV Hycan 007 Spotted in China's EV Subsidy Plan

GAC is the only state-owned enterprise in Guangzhou to implement the professional manager system reform. It is also one of the pilot enterprises for the “Double Hundred Actions” of state-owned enterprise reform which is an important part of the energy reform. In January 2019, Zeng Qinghong, Chairman of GAC Group, and Feng Xingya, General Manager of GAC Group visited the GAC NIO many times to conduct research and guide the first model styling review. In January 2020, Zeng Qinghong learnt about the introduction of HYCAN 007 at the GAC Center.

GAC-NIO began to nurture the innovation of GAC’s manufacturing model. It is reported that the latter has now achieved a transformation from the competition in R & D and quality to opening up the entire R & D-manufacturing-sales-service industry chain. In 2019, GAC Group’s annual sales reached 2.062 million units, and it held 2 million “warning lines” in the cold winter of the auto market.

Unlike GAC, GAC-NIO’s other “golden master” NIO is in a worrying situation. In 2019, NIO’s annual sales were 21,000 units, far from reaching its sales target. Behind the sluggish sales is the decline in stock prices. In 2019, due to adverse performance, NIO’s stock price once fell below one dollar and was caught in a web of various “acquired” rumours.

GAC-NIO's 1st EV Hycan 007 Spotted in China's EV Subsidy Plan

Recently, it was reported that Geely Auto was going to invest in NIO for the US $300 million, and once again pushed the latter to the center of public opinion.

The development speed of GAC-NIO, which is in a dynamic balance between GAC and NIO, depends on both parties. When the imbalance appears on one side of the balance, the future of GAC-NIO is also clouded.

The good news is that HYCAN 007 is close to the market. It is reported that GAC-NIO plans to reach HYCAN 007’s listing and delivery plan in April this year. To this end, it is accelerating the production progress of products, as a new energy source in GAC.