GAC NIO Bags USD372.3 Million Investment to Develop Smart Cars for Gen Z
Tang Shihua
DATE:  Jan 06 2021
/ SOURCE:  Yicai
GAC NIO Bags USD372.3 Million Investment to Develop Smart Cars for Gen Z GAC NIO Bags USD372.3 Million Investment to Develop Smart Cars for Gen Z

(Yicai Global) Jan. 6 -- A joint venture between major Chinese automaker Guangzhou Automobile Group and smart electric vehicle startup Nio secured CNY2.4 billion (USD372.3 million) in investment yesterday. The JV plans to develop new smart connected car models for Generation Z buyers.

Guangdong Zhutou Intelligent Technology Investment will infuse about CNY1.9 billion into GAC NIO New Energy Automotive Technology, while GAC Group’s wholly-owned GAC AION New Energy Vehicle unit will contribute the remaining CNY482 million, GAC Group announced yesterday.

The statement was silent as to the shareholding ratio in the JV between the new shareholders and Nio and its subsidiaries post-transaction, except to say the combined holding of GAC Group and its units will fall to 25 percent. GAC Group and its subsidiaries and Nio previously held 45 percent each in the JV.

The statement also omitted any mention of the background of the investor Guangdong Zhutou Intelligent Technology Investment and details of the JV’s future business goals. GAC NIO will cooperate with Guangdong Yuanzhi Technology Group, which owns smart networking and intelligent driving technologies, to develop a new generation of smart cars for "Zoomers" after getting the investment, the China Securities Journal reported.

The project’s first phase is expected to devour CNY3 billion in investment and its follow-up outlays will top CNY10 billion. GAC Group will make the models in the initial stage of the partnership, with the target delivery of 250,000 smart cars by 2025, the China Securities Journal reported.

Formed in April 2018, GAC NIO mainly engages in the research and development and sales and service of pure electric vehicles. The company’s first new model HYCAN 007 did not sell well, however. It only moved 631 units in last year’s first 11 months, a far cry from its initial aim of 15,000 units for the year.

Editor: Ben Armour, Xiao Yi

Follow Yicai Global on
Keywords:   Strategic Investment,Joint Venture,Smart Vehicle,Electric Vehicle,GAC NIO New Energy Automotive,GAC Group,Nio