Chinese electric vehicle manufacturer Nio, Inc. NIO has signed a strategic cooperation agreement with Guoxing Auto Service Center, located in Beijing, under which the EV maker will supply its vehicles to Chinese central agencies, central enterprises and other quasi-government agencies, the CnEVPost reported.
The signing ceremony was attended by Qin Linhong, co-founder and president of Nio, and Sun Xinglai, the secretary of the party committee, the report added.
Guoxing is the purchasing arm of central government in China and facilitates provision of services, including auto sales, repair, leasing and insurance.
Related Link: Nio Day 2021: Suzhou Wins The Race to Host EV Maker's Annual Event, Beating Out Hefei and Xi'an
Why It's Important: Volkswagen AG's VWAGY Audi is currently the preferred choice for the Chinese government fleet, the report said. If Nio gets a foothold into this area, the Chinese company would stand to gain significantly in the long run.
In June, Nio reported record deliveries of 8,983 vehicles, more than doubling the numbers from a year ago. The record performance came despite the industrywide chip shortage constraining production.
See also: How to Buy Nio Stock
Nio shares have taken a drubbing in recent sessions following across-the-board weakness in Chinese stocks amid Chinese regulatory scrutiny of big tech firms, online tutoring companies and companies with overseas listings.
NIO Price Action: Nio shares were down 9.1% at $39.24 at last check Tuesday.
Related Link: Tesla, Nio Shares Diverge: What Does It Signal For The EV Companies?
Photo: a Nio charging station.
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