China’s JAC Motors Soars After Signing Smart NEV Deal With Nio
Tang Shihua
DATE:  Mar 05 2021
/ SOURCE:  Yicai
China’s JAC Motors Soars After Signing Smart NEV Deal With Nio China’s JAC Motors Soars After Signing Smart NEV Deal With Nio

(Yicai Global) March 5 -- Jianghuai Automobile Group’s shares surged by the daily trading limit after the Chinese state-owned carmaker said it will deepen its partnership with Nio to include developing and producing smart new energy vehicles and their parts.

Jianghuai Automobile [SHA: 600418], better known as JAC Motors, rose 10 percent today to end the week at CNY9.47 (USD9.50).

JAC Motors will own 51 percent of the joint venture the pair will set up, the Hefei-based company said in a statement yesterday, without disclosing financial or output details. The new plant will use big data, artificial intelligence, and the Internet of Things to provide clients with advanced solutions.

The deal deepens the existing cooperation between JAC Motors and Nio, a Shanghai-based electric vehicle startup. They penned an agreement in April 2016 for JAC Motors to make Nio’s first model, the ES8 sport-utility vehicle.

Besides Nio, JAC Motors has also partnered with Volkswagen. Last May, the German auto giant bought a 50 percent stake in the carmaker's parent company Jianghuai Automobile Group Holdings for EUR1 billion (USD1.2 billion).

Shares of Nio [NYSE: NIO] dropped 5.4 percent to USD39.28 in New York yesterday. Nio has fallen nearly 40 percent from an all-time high on Feb. 10 after reporting on March 1 a wider-than-expected fourth-quarter loss and forecasting vehicle sales growth to slow this quarter.

Editor: Emmi Laine, Xiao Yi

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Keywords:   Joint Venture,Electric Vehicle,Smart Factory,Jianghuai Automobile,Nio