Shanghai (ZXZC)-  GAC Group agreed on December 18 to offer GAC NIO a loan of 15 million yuan ($2.29 million) with an one-year tenure, according to the automaker's announcement.

Just two days ago, some officials from Beijing municipal government visited GAC NIO's headquarters to negotiate with Liao Bing, founder of the startup, about an investment plan, according to a local media outlet. If the discussion goes smoothly, GAC NIO's headquarters or new manufacturing base is likely to be moved to Beijing.

HYCAN 007; photo credit: GAC NIO

Founded in April 2018, GAC NIO involves a registered capital of 500 million yuan ($75,933,600), which are together invested by such companies as GAC Group, GAC NE and Shanghai NIO Automobile Co.,Ltd. It is principally engaged in the R&D and sale of all-electric vehicles, and other supporting services like EV charging, the installation and management of charging piles, as well as EV rental service.

GAC NIO launched the BEV-focused brand “HYCAN” in May 2019, with the concept of the HYCAN 007 unveiled at the same time. The mass-produced version hit the market in April 2020, with guiding prices ranging from 259,800 yuan ($39,455) and 400,000 yuan ($60,747).

GAC NIO was ambitious to sell 15,000 vehicles throughout 2020 while launching the HYCAN 007 in Dec. 2019. The sales target was cut to 5,000 units. Nevertheless, the sales for the first three quarters only totaled 562 units, which were still far behind the revised goal.

GAC NIO entered into a strategic partnership with Banma Network Technology Co.,Ltd., the Alibaba-backed Internet car solution provider, at the Auto Guangzhou 2020 to jointly develop intelligent driving technologies.

Under the agreement, both parties will co-develop such functional modules as in-car mini programs and intelligent voice interaction system in the near future with Banma's advanced technologies integrated into GAC NIO's new models.