Chinese electric vehicle maker Nio is set to spin off its recharging service, Nio Power, to seek equity financing at “billions of yuan” in the fourth quarter of this year, Chinese tech media outlet Yiou reported Tuesday, citing multiple unnamed sources. RMB 1 billion equals roughly USD 14.5 million.
Nio did not deny the Yiou report when contacted by KrAsia on Wednesday, but added that it could not provide any further information at the moment.
Nio confirmed that it has expanded its recharging services, which used to be only available for its car owners nationwide, to serve all EV users in 53 cities since April 16th. Nio didn’t share much more, but according to its Nio Power mini progam on WeChat, the charging service will be launched in more cities.
Incoming funding for a new business unit could help the EV maker expand in the recharging market as more and more companies are rushing into this sector. Nio itself is still making losses now.
The company booked USD 390.9 million in net losses in the first quarter of this year, up 71.4% year-on-year. It sold 3,989 units of its ES8 flagship SUV in the first quarter of this year, down from 7,980 units in the last three months of 2018 and predicted sales to decrease even further in the second quarter.
Meanwhile, attention is shifting to the recharging sector.
China Evergrande Group just set up a joint venture with State Grid Corporation of China, the largest public utility in the world, to offer recharging services.
Volkswagen established a joint venture with two Chinese automakers and Star Charge, one of China’s leading EV charging operators to establish smart charging infrastructure.
And Didi Chuxing, China’s largest ride-hailing platform, has also entered into a partnership with the government of Hainan province and China Southern Power Grid to provide comprehensive EV service solutions on the tropical island.