Written by Cláudio Afonso | LinkedIn | X
Shanghai headquartered Nio announced Sunday it received a 3.3 billion yuan (approximately $470 million) investment for its subsidiary Nio Holding Co., Ltd., also known as Nio China.
Nio started delivering the debut model under its first sub-brand Onvo on Saturday and the second one, Firefly, will be unveiled in the first half of next year.
Hefei, a city located about 300 miles north of Shanghai and home to both Nio’s manufacturing plants, is part of the Anhui Province.
Two of the three investors are the Anhui Provincial Emerging Industry Investment and the Hefei Jianheng New Energy Automobile Investment Fund Partnership.
These investors have a history with Nio, having secured a $1 billion investment agreement back in 2020.
Nio Group founder and CEO William Li celebrated the investment highlighting that Anhui and Hefei “rescued” the company in 2020.
“As our country approaches its 75th anniversary, Nio China has once again received support from its shareholders. Four years ago, Anhui and Hefei rescued Nio from the ICU,” Li wrote.
“With everyone’s care, Nio’s sales have grown fivefold in the past four years, continuing to lead the premium smart electric vehicle market. Our second brand, ‘Alps,’ successfully launched its first model, gaining significant market attention,” he added before noting the growth over the last years.
“Nio has grown from a small seedling to a sapling capable of withstanding some storms. As this sapling grows into a large tree and then a forest, Hefei and Anhui continue to nurture and cultivate it,” Li stated.
In a statement, the chief executive says the new investment shows “a firm commitment to the innovation in the smart electric vehicle industry in Hefei and Anhui”.
“This is not only a sign of trust in Nio but also a firm commitment to the innovation in the smart electric vehicle industry in Hefei and Anhui, demonstrating strong confidence in the high-quality development of China’s smart EV industry.”
In December 2023, Nio secured a $2.2 billion investment from CYVN Holdings, an Abu Dhabi-based investment vehicle, which increased CYVN’s ownership to 20.1 percent of the company’s total issued and outstanding shares.
The investment followed a $738.5 million investment made by CYVN in July 2023.
This combined investment, referred to as the “Investment Transaction,” will result in Nio holding 88.3 percent of Nio China’s equity upon completion, with the strategic investors and other existing shareholders collectively holding the remaining 11.7 percent.
Nio will expand to the Middle East later this year. The first showroom will be located in the Galleria Al Maryah Island in Abu Dhabi and the first battery swap station next to the Yas Marina F1 Circuit.
Written by Cláudio Afonso | LinkedIn | X
