Arcfox is preparing to roll out battery swapping across its entire vehicle lineup.
On the evening of November 13, Arcfox simultaneously launched the Beta S3 Laser Battery Swap Edition and the Beta T1 Battery Swap Edition. With battery leasing, the former is priced at a limited-time subsidized price of 78,800 yuan, while the latter's two configurations are priced at 52,000 yuan and 60,000 yuan respectively.
The S3 was Arcfox's first battery-swap model launched in May this year, and this time a configuration equipped with LiDAR has been added. The T1, which has accumulated sales exceeding 100,000 units, is now offering a battery-swap version for the first time.
Arcfox's decision to double down is based on the S3's performance in the nearly six months since its launch.
Liu Guanqiao, Chairman of BAIC BJEV, told Wallstreetcn on the evening of November 13 that approximately 70% of S3 buyers chose the battery-swap version, and the S3 has accumulated more than 100,000 battery swaps. Battery leasing reduces the upfront cost of purchasing a vehicle and has also brought a batch of family car customers to CATL's battery-swap network. According to the plan outlined by Liu Guanqiao, by 2027 Arcfox will offer battery-swap versions across all models in its Beta, Alpha, and Wendez series.
The more cars sold, the more stations and networks must expand accordingly.
CATL's Chocolate battery-swap stations grew from over 1,000 at the end of last year to more than 2,500 by the end of September this year, with a target of 6,000 by 2027. This year, CATL has been extending its battery-swap stations to highways while bringing in local state-owned capital and automaker channels to participate in construction.
Arcfox is responsible for selling battery-swap models at more price points, while CATL needs to bring these vehicles onto the same network to improve station utilization rates.
Beta Volume Growth Lifts Arcfox Sales
Arcfox's first foray into battery swapping chose the Beta S3, aimed at the mainstream family car market. On May 22, this vehicle was launched in both charging and battery-swap forms, with eight configurations offered in total.
On the day of launch, Liu Guanqiao, Chairman of BAIC BJEV, stated publicly that the S3 had received over 30,000 pre-sale orders, with 76% choosing the battery-swap version. By November, according to data released at the launch event, the proportion of users choosing the S3 battery-swap version remained at approximately 70%, with cumulative battery swaps exceeding 100,000.
The two vehicles launched this time correspond to two approaches Arcfox is taking to expand battery-swap sales.
The Beta S3 Laser Battery Swap Edition adds a high-end configuration to the main-selling lineup, with a CLTC range of 535 kilometers, supporting urban and highway navigational assistance, and a lease price of 78,800 yuan.
The Beta T1 is offering a battery-swap version for the first time, with the two configurations priced at 52,000 yuan and 60,000 yuan for battery leasing, both with a CLTC range of 530 kilometers. The T1 had previously accumulated sales exceeding 100,000 units, allowing Arcfox to extend battery swapping to another model with an established customer base.
Both new vehicles offer two tiers of monthly battery rental at 399 yuan and 599 yuan, with the former providing a monthly mileage allowance of 5,000 kilometers and the latter offering unlimited mileage. Both new vehicles and existing S3 battery-swap users can also enjoy 10,000 kilometers of free battery swapping for a limited time. At a monthly rental of 399 yuan, the 12-month battery rental cost is 4,788 yuan. Separating the battery from the vehicle price gives budget-conscious families a price they can afford now, while adding a fixed expense to their usage costs.
After the S3 gained volume, Arcfox's brand sales moved up a notch.
Arcfox sold 17,943 vehicles in May, rising to 25,646 in June, a month-over-month increase of approximately 43%. June was the first full sales month after the Beta S3's launch, with the vehicle's insurance registrations reaching 6,262 units.
Arcfox already had the Beta T1 covering the small pure-electric vehicle market, and the S3 achieved sales in the pure-electric family sedan market around the 100,000 yuan range, adding a volume-driving model to the brand.
By the fourth quarter, the division of labor among several main models became clearer. According to model sales rankings, the S3 sold 6,985 and 6,892 units in September and October respectively, staying close to 7,000 units for two consecutive months.
During the same period, the T1 grew from 7,025 to 8,347 units, and the Alpha T7 also sold 8,131 units in October. The S3 maintained sales in the family sedan market, while the T1 and Alpha T7 gained volume in the small car and family SUV markets respectively.
Several models gaining volume simultaneously was reflected in the brand's monthly data. Arcfox's October sales rose from 21,518 units in September to 26,325 units, a month-over-month increase of 22.3% and a year-over-year increase of 12.56%. In the first 10 months of this year, Arcfox sold a cumulative 161,800 vehicles, up 45.51% year-over-year, already reaching the full-year sales level disclosed in BAIC BluePark's annual report for last year.
Going forward, Arcfox's growth opportunities come from several different segments. BAIC BluePark listed the T1 and S3 as the two models supporting Arcfox's sales in its annual report, while also proposing to expand into large-space SUVs.
With the Alpha T7's deliveries advancing, Arcfox now has a model selling over 8,000 units per month in the 130,000 to 170,000 yuan family SUV market. This price point is higher than the two main Beta models, which can add sales for the brand and also expand the price range Arcfox covers in the mainstream family market.
This is also the foundation for Arcfox to continue pushing battery swapping across its entire lineup. The Beta S3 has proven that family sedan buyers are willing to choose battery swapping, while the T1 brings battery swapping into the small car market where the brand has higher sales.
With the S3, Arcfox has already seen family sedan buyers' acceptance of battery swapping. The T1 can answer another question. This small car was already selling over 8,000 units per month before adding a battery-swap version. Battery leasing brings the entry price down to just over 50,000 yuan, giving Arcfox an opportunity to attract buyers who were originally only looking at cheaper models. What will be more telling next is how many more units the entire T1 lineup can sell.
For the Alpha and Wendez, purchase budgets are higher, and the weight of saving on a battery payment will also change. Especially for an SUV responsible for family travel, being able to swap batteries near home on weekdays and still find a swap station during holiday long-distance trips is equally important to buyers.
Station Construction Accelerates, Investment Brings in Partners
BAIC BJEV first started battery swapping in the taxi market.
At the end of 2015, BAIC BJEV delivered its first batch of 200 EU220 battery-swap taxis in Beijing. In October 2016, the first 10 charging and battery-swap stations built by BAIC BJEV in cooperation with Sinopec and Aulton New Energy were put into use in Beijing. By 2018, BAIC expanded battery-swap pilots to the private market, launching the EU Quick Swap Edition, where owners purchase the vehicle body and lease the battery monthly.
In 2024, BAIC Group and CATL incorporated battery-swap models, battery development, and regional station construction into their cooperation.
This year, the cooperation has landed on Arcfox's main-selling models. The Beta S3 and T1 connect to CATL's Chocolate battery-swap network, which serves multiple brands. For Arcfox, which cities the battery-swap version can be sold in largely depends on the construction progress of this shared network.
At the end of last year, CATL had over 1,000 passenger vehicle battery-swap stations, covering 45 cities. In April this year, when BAIC Group and CATL signed a cooperation agreement, the number of stations had exceeded 1,470.
As of September 29, Chocolate battery swapping had built over 2,520 stations cumulatively, covering 200 cities. Since launching the new battery warehousing plan in the second quarter, nearly 20,000 new batteries have been progressively put into station circulation.
One change in station network layout this year is the expansion from urban locations to highway networking.
Yang Jun, Co-President of CATL's Market System, stated on the evening of November 13 that the plan is to build 6,000 Chocolate battery-swap stations by 2027, covering 297 cities. According to the operator's published plans, from 2026 to 2027, 1,000 highway battery-swap stations will also be deployed along major national highway corridors. Urban stations serve daily travel, while highway stations extend battery-swap services to inter-city scenarios, also expanding the range of vehicle usage that automakers can cover when selling battery-swap models.
Expanding stations requires continuous investment.
A 2025 research report by Guojin Securities estimated that the construction cost per station for the new-generation Chocolate passenger vehicle battery-swap station is approximately 1.5 million yuan. Starting from the scale at the end of September this year, expanding to 6,000 stations would require approximately 3,500 new stations, which at this per-station cost roughly translates to about 5.2 billion yuan in station construction investment.
After stations are put into operation, circulating batteries must be configured based on vehicle traffic, along with site and maintenance expenses. The pace of station construction and vehicle deployment will directly affect equipment utilization rates and investment payback periods.
Who bears the upfront investment has already seen concrete examples this year.
In August, CATL's subsidiary Times Electric Service signed an agreement with Kunming state-owned enterprise Kunfazhan New Energy to jointly build 100 Chocolate battery-swap stations in Kunming. Kunfazhan New Energy bears the asset investment, while Times Electric Service provides the standardized system, operational plans, and digital systems.
In October, BAIC Group signed another agreement with CATL, proposing to open its dealer network and explore building stations and joint operations through stores. Local state-owned capital can bear construction investment, while automaker channels can provide site selection resources and bring vehicle purchase and after-sales customers to stations.
The battery-swap system is also expanding its compatibility range. In April this year, CATL released the No. 26 Chocolate battery-swap battery based on an 800-volt architecture, with an initial capacity of 75 kilowatt-hours, aimed at higher-tier models.
In the same release, CATL also proposed installing supercharging piles at battery-swap stations, allowing both types of equipment to share transformers and charging modules. The former gives the battery-swap network the capability to connect more models, while the latter expands the range of vehicles a single station can serve.
A senior automotive industry analyst told Wallstreetcn that as more main-selling models support battery swapping and the station network extends from cities to highways, the position of battery swapping in the passenger vehicle energy replenishment system is worth reassessing. With both station models and the network expanding simultaneously, battery swapping has the opportunity to become a commonly used energy replenishment method for more family vehicles.
Charging and battery swapping differ in their pursuit of vehicle traffic. BYD disclosed that as of the end of August, users of other brands accounted for nearly one-third of its flash-charging station users. For battery-swap stations to do business with other brands, automakers must first choose compatible battery specifications when developing new vehicles. For CATL, Arcfox's willingness to connect all three series one after another carries more weight than winning over a single vehicle.
When BAIC and CATL signed their agreement in October, they proposed promoting the connection of compatible models across multiple BAIC brands, with a cooperation target of one million battery-swap vehicles.
For Arcfox, the S3 and T1 first covered the family sedan and small car markets with established sales bases. For CATL, the more models connected, the more opportunities a single station has to serve vehicles from multiple brands.
Next, automakers will look at how much incremental sales the battery-swap versions can contribute, while operators will look at how many daily average battery-swap orders these vehicles can generate. Together, these two data points will determine whether the additional investment can be recouped after this network expands to 6,000 stations.
Comments