(Yicai Global) May 25 -- Shares of Nio jumped after the Chinese new energy vehicle maker said it will renew its manufacturing partnership with Jianghuai Automobile Group for another three years.
Nio's stock price [NYSE: NIO] rallied 5.3 percent to USD35.89 in New York yesterday, still more than 30 percent down this year.
JAC will continue manufacturing the Nio ES8, ES6, EC6, ET7, and potentially other models till May 2024, the Shanghai-headquartered electric carmaker said in a statement on its website yesterday.
The Hefei-based state-owned firm will expand its annual production capacity to 240,000 units to meet the rising demand.
In April 2016, the pair penned an agreement for JAC to produce 50,000 units per year for Nio till March 2021.
Nio will be in charge of vehicle development, supply chain management, manufacturing techniques, and quality management, per the latest deal. The pair's joint venture, Jianglai Advanced Manufacturing Technology, will be responsible for parts assembly and operations. Nio has a 49 percent stake in the JV.
Shares of JAC [SHA: 600418] were 1.6 percent up at CNY9.39 (USD1.50) in the afternoon.
Editor: Emmi Laine, Xiao Yi