Chinese e-commerce giant JD launched a new electric vehicle in collaboration with Chinese automaker GAC Group and battery maker Contemporary Amperex Technology Co Ltd on Sunday, a move industry experts said will intensify competition in the country's booming new energy vehicle sector.

Labeled as a "national good car", the Aion UT Super model is available for sale exclusively on JD's online platform. While the battery-leasing purchase option is priced at 49,900 yuan ($7,007), the full vehicle purchase price is 89,900 yuan.

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While JD is not directly involved in the manufacturing process, it is responsible for exclusive sales and consumer insights, leveraging data from millions of annual car-related searches to understand user demand.

GAC is in charge of the research and development and production of the vehicle, while CATL provides battery technology and battery-swapping ecosystem support.

Zhang Xiang, a visiting professor at the engineering department of Huanghe Science and Technology University, said that as an internet company accumulating a large number of users, JD has marched into the NEV segment to seek new sources of revenue, as growth in the e-commerce industry is currently slowing.

"JD's entry has brought the battery-swapping model into the automobile field, opening up a new frontier for the smart vehicle industry," Zhang said.

JD will mainly focus on the exclusive sales and maintenance of the new vehicle, which will bolster the consumption of NEVs and promote the robust development of the sector, Zhang added.

Zhang noted that the car is now available for under 100,000 yuan and fills a gap in the market, as previously the cheapest battery-swapping car cost over 200,000 yuan.

"The move will make China's NEV sector more vibrant, diversify product offerings and give consumers more purchasing options."

The new model has a range of up to 500 kilometers and is equipped with CATL's battery-swapping technology, which allows the vehicle's battery to be swapped in just 99 seconds. CATL plans to build over 5,000 battery-swapping stations in the future, creating a convenient and efficient energy replenishment ecosystem.

JD has expanded its footprint in the automotive industry, building a comprehensive ecosystem that spans vehicle purchasing, maintenance, usage, and after-sales services. Through its online platforms, it offers an extensive selection of automotive products and parts, while it operates 3,000 offline car service centers and partners with over 40,000 stores.

Cao Lei, director of the Internet Economy Institute, a domestic consultancy, said JD provides traditional automakers with consumer insights and integrated online and offline sales channels.

Chinese internet companies are making inroads into the automotive sector as they have gained certain technological advantages, such as AI capabilities, Cao said.

Smart EVs are emerging as a vital entry platform to attract a new breed of users and accelerate sales, and JD can leverage data from 20 million annual searches for vehicles and precisely identify consumer demand to provide customized services, Cao added.

China's NEV segment has witnessed rapid growth this year.

The China Association of Automobile Manufacturers said the country's NEV production volume surged 35.2 percent year-on-year to 11.24 million units in the first nine months, while sales amounted to 11.23 million units, an increase of 34.9 percent year-on-year.

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China produced more than 12.88 million NEVs and sold 12.86 million of them last year, and has maintained the world's top position in NEV production and sales for 10 consecutive years.

Chinese tech giants such as Huawei and Xiaomi have already expanded into the automotive sector. JD has recently inked a strategic partnership with CATL. The two companies will jointly establish an official direct-sales channel for CATL's battery swap system, and expand sales of battery swap vehicles. The partners will also cooperate in the battery after-sales segment.

Pan Helin, a member of the Ministry of Industry and Information Technology's Expert Committee for Information and Communication Economy, said the online and offline channels for auto sales will increasingly merge. "E-commerce platforms will act as major gateways for attracting consumer traffic, while physical stores will provide spaces for test drives and in-person experiences."

Contact the writers at fanfeifei@chinadaily.com.cn