Chinese electric vehicle manufacturer Nio's Anhui unit, in collaboration with a state-owned company affiliated with the Hefei government, successfully acquired assets from NHui Jianghuai Automobile (JAC) in a joint bid valued at 4.58 billion yuan ($641.2 million), as announced on Tuesday.
Under the terms of the deal, Nio will acquire fixed assets and equipment from two JAC factories for a total of 3.16 billion yuan. Simultaneously, Hefei Hengchuang Intelligent Technology, a state-owned industry park developer, will purchase the buildings and land use rights of one of the plants for 1.42 billion yuan, according to the statement released.
Nio officially confirmed the transaction through an exchange filing, while Hengchuang has yet to respond to requests for comment.
In October, JAC initiated the sale of assets located at the F1 and F2 plants, where Nio has been actively producing its electric vehicles (EVs). Nio emphasized that it had independently designed the production lines and developed manufacturing technologies at these facilities. The joint venture with JAC, in operation since 2019, has primarily overseen plant management, with JAC focusing on the recruitment of assembly workers.
Given China's regulatory efforts to manage production capacity growth in the auto industry, the deal reflects an evolution in the partnership dynamics. Nio gained approval in 2018 to produce and sell EVs in China through its collaboration with JAC, wherein JAC received commission fees for each car produced by Nio.
As of the first 10 months of this year, Nio holds the ninth position in sales of EVs and plug-in hybrids in China, with 126,067 units, according to data from the China Passenger Car Association.