NIO Inc., a manufacturer of smart electric vehicles in China, has entered into manufacturing agreements with Jianghuai Automobile Group Co. Ltd.( JAC), and Jianglai Advanced Manufacturing Technology (Anhui), Jianglai, regarding the joint manufacturing of NIO vehicles and related fee arrangements.
JAC is a major state-owned automobile manufacturer in China that currently manufactures the NIO vehicles in delivery, including the ES8, ES6 and EC6, in the Hefei JAC-NIO manufacturing plant designed and constructed for NIO vehicles. Jianglai is a joint venture for operation management established by JAC and NIO where NIO holds 49% equity interests.
Pursuant to the joint manufacturing arrangement, from May 2021 to May 2024, JAC will continue to manufacture the ES8, ES6, EC6, ET7 and potentially other NIO models in the pipeline. In addition, JAC will expand its annual production capacity to 240,000 units (calculated based on 4,000 work hours per year) in order to meet the demand for NIO vehicles. NIO will be in charge of vehicle development and engineering, supply chain management, manufacturing techniques, and quality management and assurance. Jianglai will be responsible for parts assembly and operation management.