Written by Cláudio Afonso | LinkedIn | X
Nio’s Associate Vice President for Brand and Communications, Ma Lin, denied on Friday the rumors that have been circulating on Chinese social media regarding the formation of a joint venture with the Shenzhen-headquartered giant brand BYD.
On Weibo, a user shared that BYD had formed a joint venture with Nio and acquired Nio Auto for 16.5 billion yuan, equivalent to $2.28 billion, to “enhance Nio Auto’s competitiveness in the new energy vehicle market.”
“BYD and Nio Group have collaborated to establish BYD-Nio Auto Group, with BYD holding a 51% stake and Nio holding 49%. BYD-Nio Auto Group has acquired Nio Auto for 16.5 billion yuan, with BYD providing support in the form of funding and technology. After the acquisition, BYD-Nio Auto Group will directly control Nio Auto, but Nio Auto will still be independently operated by Nio Group,” the user wrote on Weibo.
“This acquisition aims to achieve resource integration and complementary strengths. BYD’s trade and tripartite technology advancements will enhance Nio Auto’s competitiveness in the new energy vehicle market. Through technological collaboration, production and supply chain optimization, and market expansion, this effort will help solidify Nio Auto’s position in the high-end market, create greater value, and drive the development of the new energy vehicle industry,” he added.
BYD’s General Manager of Brand and Public Relations commented on the social media rumors stating, “The online rumors regarding investment and cooperation between BYD and NIO are seriously false information! Please do not believe or spread rumors.”
On Weibo, Nio’s executive Ma Lin shared a picture on Friday where he commented on the post and asked if it was coming from a BYD employee.
“Yunfei, is this a BYD employee? Could you help check whether this is a BYD employee?”If it’s a BYD employee, please ask him to clarify and apologize. If not, we can report it to the police together,” Ma Lin wrote on WeChat according to a translation of the screenshot.
While sharing the image, Nio’s executive said, “The company is doing quite well recently,” adding that “cash flow turned positive in the third quarter, gross profit further improved in October, adding an extra 100 million yuan.”
“In December, sales at Onvo are expected to exceed 10,000 units. Thank you to our friends for your care and support. We will continue to power up!,” the executive added.
Nio reported its third-quarter financial results earlier this week with management forecasting a sales record for the final quarter of 2024 and projecting sales to double next year, exceeding 442,000 units.
Written by Cláudio Afonso | LinkedIn | X
