GAC Group has agreed to provide an RMB 15 million yuan ($2.3 million) entrusted loan to GAC Nio, a joint venture with Nio, for a term of one year at the benchmark interest rate LPR for the same period, the group announced today.

GAC Nio provides collateral security for the loan with its assets.

GAC Nio was founded in 2018 by GAC Group, GAC New Energy, Nio, and Nio Fund.

In May 2019, GAC Nio launched its new brand HYCAN.

GAC Nio has only one model under its umbrella, the HYCAN 007, a mid-sized all-electric SUV with a price range of RMB 259,800 to RMB 303,000.

GAC Nio has lowered its sales target to 5,000 units this year, but even so, by the end of September this year, the cumulative sales of the HYCAN 007 were only 562 units.

GAC Nio CEO Liao Bing said on Weibo on Thursday that his company would challenge the industry's toughest service promises and asked everyone to witness it.

The poster he posted said that there are many service promises from peers, but few of them can be fulfilled in the end.

GAC Nio promised to "return within 7 days", " first pay, then return within 60 days in case of major quality problems", " ensure 60% of the residual value within 3 years".

GAC NIO says it will challenge industry's toughest service