Changan, Nio form electric car JV
China’s fourth- largest automaker Chongqing Changan Automobile Co and Nio, an electric car start- up formerly known as NextEV, will form a joint venture to cooperate on researching and selling electric cars, Nio said on Sunday.
China is promoting electric cars to combat urban smog and push the industry to the forefront of automotive technology, loosening rules in recent years to allow start- ups like Nio to flood the industry and challenge established Chinese automakers.
The Changan- Nio JV will focus on research, sales and service for green cars. Under a broader partnership, the companies will also share resources related to smart vehicle technology, manufacturing and other areas, according to a statement from Nio.
Financial terms of the partnership were not disclosed.
A Changan spokesman said the company had no further in- formation to release.
Chinese technology giant Tencent Holdings was an early backer of Nio, and rival Internet company Baidu Inc last month said it was leading a new round of investment into the start- up.
Nio has also worked with Anhui Jianghuai Automobile Group Corp to produce electric vehicles on a contract basis.
Sales in the green energy vehicle segment jumped in February by about 30 percent year- on- year, rebounding from a 74 percent decline in January when subsidies were reduced 20 percent.