GAC and NIO Set Up Joint Venture HYCAN
The core teams of GAC, NIO and HYCAN hold 45%, 45% and 10% of the new venture’s share, respectively.
A joint venture between Chinese electric car startup NIO and traditional car maker GAC has unveiled and named HYCAN (合创). Its first concept car was also unveiled, GAC-NIO will make further optimization on the basis of the concept car released this time.
At present, GAC-NIO has not released other specifications and details about the model. LIAO Bing, founder and CEO of GAC-NIO said that HYCAN's first car will be launched in Guangzhou at the end of this year, with a range of more than 600km and a price tag of around CNY 200,000 (USD 28938.9), and its delivery will start in the first half of next year.
'HYCAN's first vehicle will be a mid-to-high-end pure electric vehicle,' LIAO said. Although there is a connection between HYCAN, NIO and GAC’s new EV brands, they are distinctive in marketing positioning and prices.
In addition, HYCAN will establish its own sales and distribution channels and the firm has decided to share service outlets with GAC New Energy Automobile Co., Ltd., the EV affiliate of the Guangzhou-based car maker.
"GAC will provide HYCAN with vehicle platform, supply chain, large-scale manufacturing and after-sales service, while NIO will equip it with intelligent network connection technology, energy services. At the same time, HYCAN is not only limited to GAC Group and NIO but also widely integrates other advantageous resources, "the official statement said
HYCAN is not a car manufacturer, but an "open and shared" intelligent + mobility ecological platform, which is built upon the combined merits of traditional main engine manufacturers and new car manufacturers and aims to create a mobility ecological ecosystem characterized by "vehicle + generic products".
GAC Group and NIO formally signed a memorandum of strategic cooperation on December 28, 2018, indicating that they are committed to comprehensive cooperation in all aspects of the industrial chain.
The total planned investment of the joint venture company is estimated at CNY 1.28 billion with a registered capital of CNY 500 million (USD 72.35 million), which will be contributed in stages with the initial registered capital of CNY 200 million (USD 28.94 million). GAC Group will contribute CNY 45 million and take up a 22.5% share, while its subsidiary GAC New Energy Automobile Co., Ltd. will shell out CNY 45 million for a 22.5% share. The core teams of GAC, NIO and HYCAN hold 45%, 45% and 10% of the new venture’s share, respectively.