China’s Aiways Delays U5’s European Launch To August, Announces Direct Sales Model

Aiways will launch in Europe with a direct-to-customer sales model instead of the traditional method of selling or leasing vehicles through dealerships.

The Chinese company will start selling its U5 electric SUV from August 2020 in Denmark, France, Germany, the Netherlands, Norway and Switzerland, with other markets to follow. In all these markets, Aiways will operate a direct-to-customer sales and aftercare support model.

The Shanghai-based startup will announce its first business partners in Europe at the Geneva Motor Show next week, when the U5 SUV will be unveiled in European-specification. Aiways originally planned to start deliveries in the region in April but production in China was impacted by COVID-19 (Coronavirus).

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“Aiways’ sales model will improve access to the all-electric U5 and make it easy to buy a car online. We are considering different types of ownership models, ranging from subscription to outright purchase – but starting with leasing,” said Alexander Klose, Executive VP Overseas Operation at Aiways.

According to the company, the new sales model will streamline the traditional car buying experience and ensure that using and maintaining a U5 is as simple as possible. Aiways says it is currently preparing a new dedicated European website that will allow prospective customers to “research models, book test drives, configure vehicles and sign up to usage periods that suits their needs.”

This doesn’t mean Aiways will have an online-exclusive presence in Europe. The company will be establishing “showrooms” across the continent, with the first partnership being with Euronics, a leading electronics retail chain in Germany. The two companies have chosen key locations that will be staffed by EV experts and will allow consumers to interact with Aiways vehicles and conduct test drives.

Customers will be able to begin the leasing process online, choosing from a number of short- and long-term deals. The program will be backed by a dedicated European leasing partner which will be announced in the coming months.

As for aftersales, including technical support and servicing, Aiways will work with independent workshops in each country. Since the U5 SUV will have scheduled maintenance every 100,000 (62,000 miles), it doesn’t make sense for Aiways to set up its own aftersales network. In Germany, for instance, Aiways will cooperate with A.T.U., a leading chain of independent workshops.