Nio Establishes Another Intelligent Driving Company In Key City Of Hefei

Electric vehicle maker Nio Inc. NIO has bolstered its presence in the Chinese city of Hefei by launching a smart driving company, cnEVpost reported Sunday.

What Happened: Nio founded the Anhui NIO Intelligent Driving Technology Co. last Thursday in Hefei, with Qin Lihong as its legal representative, the report noted, citing data provider Qichacha. Lihong is the co-founder and president of Nio.

The business scope of the intelligent driving company, which has a registered capital of 10 million yuan ($1.55 million), reportedly includes new energy vehicle sales, auto parts research and development, and Internet information services.

See Also: Nio Named Most Promising Brand For Growth In China Survey

Why It Matters: Nio is deepening its cooperation with the Hefei municipal government after groups led by the Hefei government infused $989 million in cash into Nio China in April last year. The cash injection came at a time when Nio was struggling to meet financing needs.

Last month, Nio established a company called NIO Drive Technology (Hefei) Ltd in Hefei with a registered capital of 500 million yuan ($78.7 million), according to the report.

Hefei is also home to Nio China's headquarters and the JAC NIO facility, which rolled out the company’s 100,000th mass-produced vehicle in April.

It was reported earlier this month that Nio has started construction of its second factory at Neo Park in Hefei. The Hefei municipal government and Nio had jointly announced the official opening of the park in April.

Price Action: Nio shares closed almost 0.9% lower in Friday’s trading session at $45.07.

Read Next: Nio Opens Another 5 Battery Swap Stations In China As Part of Aggressive Expansion Strategy

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Photo: Courtesy of Nio