Chinese electric carmaker NIO plans to build a Chinese headquarters in Hefei23. June 2020
NIO said that talks have already been held with the local government of Hefei. The city in Anhui province is a center for car. The talks also set out detailed terms of a new round of investment that could raise more than 10 billion yuan (1.4 billion US dollars). NIO also plans to build a Chinese headquarter in Hefei to complement the existing plant and a research and development center. The automaker plans to announce further details as soon as they are available. The planned investment is a welcome cash injection for the struggling and loss-making company, which is one of a dozen other Chinese electric vehicle manufacturers competing with industry leader Tesla.
The market for electric cars in China has grown rapidly in recent years but has been heavily dependent on government subsidies. After a gradual withdrawal of subsidies, sales of vehicles with alternative drive systems fell by around 54 percent in January 2020. According to the Chinese Association of Automobile Manufacturers, the decline is partly due to the effects of the coronavirus, but the figures still fell for the seventh consecutive month.
Discussions on fresh funding for NIO are seen as a positive signal by the Chinese economy and could boost confidence after an extended plant shutdown during the Chinese New Year. NIO was one of eight companies that signed agreements with the Hefei government to strengthen the local economy after the end of the coronavirus crisis. In Shanghai, less affected by the virus, Tesla already reopened its factory on February 10. The Model 3 is manufactured there for the Chinese market and has been delivered to customers since January. Components and vehicles in China require a CCC certificate. The mandatory CCC (China Compulsory Certificate) seal of approval must be visibly affixed to the products. We would be happy to advise you on how to obtain a CCC (China Compulsory Certificate) for your products.
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