NIO has received a RMB 2.8 billion ($386 million) cash infusion from two investment firms controlled by the local governments of eastern China’s Anhui province and its capital city Hefei, where the Chinese electric vehicle maker operates its manufacturing plants, according to public information.
The total amount of investment in NIO Holdings Co., Ltd., a China-based subsidiary of Nio Inc., increased from RMB 16.4 billion to RMB 19.2 billion on Feb. 28, according to Chinese business intelligence platform Tianyancha. At the same time, Hefei Jianxiang Investment Co., Ltd. and Anhui High-tech Yuwenweiyuan Technology Partnership (Limited Partnership) became new investors in NIO Holdings, with approximately 3.5% and 1.4% holdings in the company.
The funding is part of a RMB 3.3 billion financing package from NIO’s three existing state-owned investors, namely Hefei Jianheng New Energy Automobile Investment Fund Partnership, Anhui Provincial Emerging Industry Investment Co., Ltd., and CS Capital Co., Ltd, already announced by the company last September. It is unknown whether and when either the existing investors or the new ones will fully complete their investment commitment. The deal was expected to be finalized by the end of last year.
Meanwhile, the local authorities that make up the Hefei Economic and Technological Development Zone on Thursday said that they are now providing subsidies specifically for new energy vehicles with swappable batteries. This means that buyers of NIO and Onvo vehicles in the area now qualify for a one-time purchase subsidy of between RMB 6,000 and RMB 10,000 by the end of this month.
NIO and its mainstream brand Onvo delivered a total of 27,055 cars in January and February, while for peers Xpeng and Li Auto the number was 60,803 and 56,190 units, respectively.
