Shanghai electric vehicle startup Nio formed a 7 billion yuan ($1 billion) subsidiary in the Chinese capital of Beijing as it moves closer to producing EVs in Beijing with a local investment company.
The subsidiary will develop electrified vehicles and related components as well as oversee sales of vehicles and components, according to National Enterprise Credit Information Publicity System, a Beijing website that tracks the credit status of local businesses.
In June, Nio confirmed that it was considering construction of a vehicle assembly plant in Beijing with Beijing E-town International Investment & Development Co., a local state-owned investment company that pledged to invest 10 billion yuan in the factory.
Nio, incorporated in Shanghai in 2014, has its EVs produced at Jianghuai Automobile Co. in the east China city of Hefei under a contract agreement.
On June 18, the company launched sales of its second product, the ES6 five-seat electric crossover. Its first product, the ES8 seven-seat crossover, went on sale a year ago.
In June, Nio delivered 1,340 vehicles: 927 ES8s and 413 ES6s. Its total vehicle sales since June 2018 reached 18,890 as of June, according to Nio’s filings on the New York Stock Exchange, where it launched an initial public stock offering in September 2018.