China's NIO secures funding from local government initiatives.

      NIO introduced its second brand, Onvo, along with its inaugural model, the L60, in Shanghai on Wednesday, May 15, 2024. Credit: NIO

      NIO has secured a cash influx of RMB 2.8 billion ($386 million) from two investment firms linked to the local governments of Anhui province and its capital city, Hefei, where the Chinese electric vehicle manufacturer operates its production facilities, as per public records. As of February 28, the total investment in NIO Holdings Co., Ltd., a subsidiary of Nio Inc. based in China, rose from RMB 16.4 billion to RMB 19.2 billion, according to the Chinese business intelligence platform Tianyancha. Concurrently, Hefei Jianxiang Investment Co., Ltd. and Anhui High-tech Yuwenweiyuan Technology Partnership (Limited Partnership) became new investors in NIO Holdings, holding approximately 3.5% and 1.4% stakes in the company, respectively. This funding is part of a RMB 3.3 billion financing arrangement involving NIO’s three existing state-owned investors: Hefei Jianheng New Energy Automobile Investment Fund Partnership, Anhui Provincial Emerging Industry Investment Co., Ltd., and CS Capital Co., Ltd., which was previously announced by the company last September. It remains unclear when or if the existing or new investors will fulfill their investment commitments, which were expected to be finalized by the end of last year. Additionally, local authorities in the Hefei Economic and Technological Development Zone announced on Thursday that they are now offering subsidies specifically for new energy vehicles equipped with swappable batteries. Consequently, purchasers of NIO and Onvo vehicles in the region will be eligible for a one-time purchase subsidy ranging from RMB 6,000 to RMB 10,000 by the end of this month. In January and February, NIO and its primary brand Onvo delivered a combined total of 27,055 cars, whereas competitors Xpeng and Li Auto reported deliveries of 60,803 and 56,190 units, respectively.

      Jill Shen is a technology reporter based in Shanghai, focusing on Chinese mobility, autonomous vehicles, and electric cars. You can connect with her via e-mail at [email protected] or on Twitter at @jill_shen_sh.