BEIJING -- Cash-strapped Chinese electric vehicle maker Nio Inc. said it had signed framework agreements with Hefei's city government on a fundraising of more than 10 billion yuan ($1.4 billion) and new manufacturing facilities.
Unprofitable Nio is the most prominent among dozens of Chinese electric vehicle startups. All are hampered by dwindling demand in the world's largest light-vehicle market and reduced government subsidies for EVs.
Nio is in talks with the capital city of Anhui province, where it is building cars with local automaker JAC, to build research centers and assembly plants.
Nio will provide details in the next two months, it said.
Under cash flow pressure, Nio said in May it would form a joint venture with Beijing E-Town International Investment and Development Co. which will invest 10 billion yuan ($1.4 billion) in the new entity. There has been no further announcements on the deal.
It has also issued bonds and accelerated cost-cutting to slow its cash burn as it seeks to attract more investors.
Vehicle sales in China fell 18 percent in January while sales of battery electric and other so-called new energy vehicles plunged 54.4 percent, preliminary data from the China Association of Automobile Manufacturers showed.
EV demand has fallen for seven consecutive months, CAAM said.