GAC’s EV Brand Teams Up With CATL on Battery-Swapping Business
Guangzhou Automobile Group Co. Ltd. (GAC)’s electric-vehicle (EV) brand Aion is partnering with Contemporary Amperex Technology Co. Ltd. (CATL) to enter the battery-swapping business due to decreasing sales. [para. 1]
On Friday, Aion formalized an agreement with CATL and a subsidiary to jointly pursue this project. The parent companies announced this collaboration on the same day. [para. 2] According to GAC’s announcement, Aion will focus on developing EV models with interchangeable batteries, while CATL will be responsible for supplying the battery packs. Furthermore, Contemporary Amperex Energy Service Technology Ltd., a wholly-owned subsidiary of CATL, will handle battery sales, rentals, and swapping services. [para. 3]
The collaboration comes amidst a significant decline in Aion’s sales, which saw a 41.2% drop year-on-year, reaching approximately 70,000 units in the first four months of the current year. [para. 4] Despite this slump, historical data shows a contrasting trend; in 2023, Aion experienced a substantial 77% year-on-year increase in sales, totaling about 480,000 vehicles sold. [para. 5]
A major contributor to this growth was Aion’s popularity in the ride-hailing sector. Approximately 219,000 Aion vehicles were sold for ride-hailing purposes, constituting more than a quarter of all new vehicles acquired for ride-hailing services in 2023, as per the information provided by Cui Dongshu, the secretary-general of the China Passenger Car Association. [para. 6]
Quick Takes are summaries of China-related stories for quick news updates. To read the full article in Chinese, follow this link. [para. 7]
Contact reporter Zhang Yukun at yukunzhang@caixin.com for more information. [para. 8]
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