SHANGHAI :
Tencent-Backed Tesla Rival Forms NEV Ride-Hailing Firm
Chen Juan
DATE:  Sep 03 2018
/ SOURCE:  Yicai
Tencent-Backed Tesla Rival Forms NEV Ride-Hailing Firm Tencent-Backed Tesla Rival Forms NEV Ride-Hailing Firm

(Yicai Global) Sept. 3 -- Chinese green energy vehicle maker Nio has formed a new unit for car rental, ride-hailing and charging operations in the country's southern island province of Hainan.

The Tencent Holdings-backed firm, which recently confirmed plans to list in the US, founded Nio Xiqi NEV Technology in the middle of last month, business registration records show. Nio President Qin Lihong will act as chairman.

The new firm could be related to the Shanghai-based firm's partnership agreement with China Automobile Technology and Research Center as well as several other companies inked on Aug. 21. The group aims to set up branches and subsidiaries in the province.

The move follows plans from state-owned SAIC Motor to also enter the country's vast ride-hailing sector. New players in the sector could pose a serious threat to Didi Chuxing's 63 percent market share. Largely unrivaled in the industry for some time, Didi's position and reputation have under pressure this year after two passengers were murdered in the past four months.

Nio's initial public offering is slated for Sept. 12. The firm plans to issue 160 million American Depositary Shares at between USD6.25 and USD8.25 apiece and will use the funds for research, marketing and developing its production facilities.

Editor: William Clegg

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Keywords:   Nio Auto,HAINAN