EV maker Nio is dissolving its joint venture with Anhui Jianghuai Automobile Group (JAC), marking the end of a long-standing contract manufacturing arrangement as the company shifts toward producing its vehicles independently.
According to a filing published on China’s National Enterprise Credit Information Publicity System, Jianglai Advanced Manufacturing Technology (Anhui) Co., Ltd. is being deregistered following a resolution to dissolve the company.
The notice period runs from June 10 to July 24, as initially reported by ITHome.
The joint venture, established in March 2021 with a registered capital of 510 million yuan ($71.2 million), was jointly owned by Nio Holdings and the state-owned car manufacturer JAC.
Its business scope included the production of road motor vehicles, production line management services, and supply chain operations.
The dissolution follows a series of steps by Nio to bring manufacturing fully in-house.
In October 2023, JAC put up for sale assets at the F1 and F2 factories in Hefei, where Nio had been building its vehicles under a contract manufacturing agreement.
In a filing published two months later, Nio said it would acquire selected fixed assets and equipment from the two plants for 3.16 billion yuan ($441 million).
Nio said the move would bring it closer to producing cars on its own and help reduce manufacturing costs.
Back then, Nio founder and CEO William Li said during an earnings call that production costs were expected to fall by about 10% after the company acquired the factory assets and took full control of the manufacturing process.
The partnership between the two companies dates back to April 2016, when Nio — then operating under the name NextEV — and JAC signed a comprehensive strategic cooperation agreement worth up to 10 billion yuan in the field of electric vehicles.
At the time, Nio did not yet hold a production license, and its vehicles were assembled by JAC.
During the company’s latest earnings call in early June, the chief executive said Nio is aiming for monthly deliveries of 25,000 vehicles for its main brand and a further 25,000 for its newly launched sub-brand, Onvo.
The group is targeting profitability by the fourth quarter, a goal that depends on more than doubling sales without cutting prices, while simultaneously reducing research and development spending and selling, general and administrative expenses.
The Shanghai-based EV maker delivered 221,970 vehicles in 2024, a 38.7% increase compared to the previous year.
