Hefei, the capital city of Anhui province, has recently introduced a new subsidy program exclusively for battery swap-enabled models in an effort to support the growth of Nio (NYSE: NIO), a prominent player in the electric vehicle market.
According to an announcement made by the Hefei Economic and Technological Development Zone, companies producing battery swap-enabled vehicles will be eligible for dedicated subsidies. These subsidies are intended to encourage companies to focus on the battery swap business, including activities such as production, research and development, promotion of battery swap models, and enhancing sales and service operations.
Hefei is one of 11 pilot cities selected by China’s Ministry of Industry and Information Technology for the implementation of the battery swap model in new energy vehicles (NEVs). The latest subsidy initiative aims to foster the development of the battery swap business model within the city.
Although specific details about the subsidies were not disclosed in the announcement, it is evident that the program is designed to support Nio, which currently operates two factories in Hefei. Nio, a leading player in the battery swap space in China, has its global headquarters in Shanghai and a Nio China headquarters in Hefei.
Yu Dongming, the general manager of Nio Anhui, confirmed that consumers purchasing Nio or Onvo brand cars before March 31 will be eligible for the subsidies. The subsidies for Nio models range from RMB 6,000 to RMB 10,000, and they are not limited to Hefei residents but are available nationwide. These subsidies can be combined with local government subsidies, providing additional benefits to buyers.
The subsidy amounts vary based on the purchase price of the vehicle. For battery swap-enabled models priced below RMB 250,000, the subsidy is RMB 2,000 per vehicle. Vehicles priced between RMB 250,000 and RMB 400,000 are eligible for a subsidy of RMB 6,000, while vehicles priced above RMB 400,000 can receive a subsidy of RMB 10,000.
Nio’s lineup includes a range of models that support battery swap technology, including the ET5, ET5 Touring, ES6, EC6, ET9, ES8, ES7, EC7, and ET7. The Onvo sub-brand currently offers the L60 model, priced at RMB 206,900.
The introduction of these subsidies in Hefei reflects the city’s commitment to promoting the adoption of battery swap-enabled vehicles and supporting the growth of innovative technologies in the electric vehicle industry. This initiative not only benefits consumers but also contributes to the overall development of sustainable transportation solutions in China.
