Electric vehicle manufacturers Nio Inc. and Xpeng Motors agreed to share charging stations as well as related services and data, seeking to spur EV demand and curb costs.
Nio and Xpeng customers can charge their vehicles using either companies’ facilities with no extra fees, the companies said Wednesday. Nio will also provide home-charger installation services for some Xpeng customers.
The companies are trying to lure buyers as EV demand wanes in the world’s largest market, partly because of customer concerns over EVs’ limited driving ranges and scarce availability of charging infrastructure. Industry sales in China have slumped for five straight months since the government reduced subsidies for EVs.
Yet China is among the world leaders in EV adoption, and has about eight public chargers for each one in the U.S.
The pact may help the upstarts limit soaring costs as they ramp up production. Each company has sold more than 10,000 cars in China this year, making them among the more established of the country’s hundreds of aspiring EV companies.
Nio, backed by Tencent Holdings, reported a loss of $2.8 billion in the 12 months ended June on revenue of $1.2 billion, with its shares plunging more than 60 percent this year. The company is aggressively expanding its sales efforts and taking comprehensive measures to reduce costs, CEO William Li said on an earnings call in September.
Closely held Xpeng Motors said last month it raised $400 million and has acknowledged the challenge of attracting investors in the sluggish market.