Nio Builds Third Chinese Factory to 'Meet Demand'

Chinese automaker Nio confirms it is beginning construction on a third domestic production plant it claims is needed to keep up with increasing demand.

The news comes days after the company claims deliveries of its battery-swap vehicles in May rose 233.8% year-on-year to 20,544 vehicles in May 2024. It also claims 66,217 vehicles year-to-date in 2024, increasing 51.0% compared to 2023.

CnEVPost quotes a report by the Chinese media outlet Lanjinger which has Nio co-founder and president Qin Lihong confirming that the new factory is being built at NeoPark in Hefei, Anhui province.

This plant expects to have a single-shift capacity of 100,000 units per year and will be used for vehicles branded both Nio and its budget sub-brand Onvo.

The reports quotes Qin saying production capacity has been reached at Nio’s two existing plants and that, with planned new product launches, capacity of the plants is no longer able to meet market demand.