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BEIJING / SHANGHAI (Reuters) – China's maker of electric vehicles (EV), Nio Inc., wants to build a production base in Beijing and will likely look for an industrial partner, said chairman and CEO William Li this week.
His comments come after Nio announced Tuesday the creation of a joint venture with Beijing E-Town International Investment and Development Co Ltd, which would invest 10 billion yuan ($ 1.45 billion) in the new entity.
Nio's current production base in Anhui Province, in the east of the country, has an annual production capacity of 100,000 units, but that is not enough, Li said at a conference on Wednesday, according to a transcript provided by the company.
The company, headquartered in Shanghai, operates the Hefei plant with Anhui Jianghuai Automobile Group Co. Ltd.
Nio delivered 3,989 units in the first quarter, almost half of what it had produced in the previous quarter.
"We will evaluate all possibilities and not completely rule out the Beijing Factory's autonomous construction project. The first choice is always to build with a partner, which is our constant strategic thinking, "said Li.
The new energy vehicle market in China, the largest in the world, is booming, and many in the industry still believe that there is still room for new electric vehicle manufacturers. However, fierce competition, reduced subsidies and a slowing economy have raised concerns about their performance.
Nio shares in the US hit a record high after BofA-ML lowered the stock to underperform, due to weak orders for the ES8 and ES6 models due to lower subsidy levels. 39, purchase for electric vehicles, reduction of free cash flow, increased refinancing risk and increased competition and rich valuation.
Report by Yilei Sun in Beijing and Brenda Goh in Shanghai; Edited by Subhranshu Sahu
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