Tesla Rival Nio Secures Car Production Qualification By Acquiring Local Automaker Leopard: Report

Tesla Inc’s rival and the leading Chinese EV maker, Nio Inc. NIO, has acquired local automaker Leopard, earning itself a car production certification, as reported by local media.

According to a CnEVPost report, the acquisition was part of a government-orchestrated deal to qualify NIO for independent vehicle production. The buyout will allow NIO to end its history of contract manufacturing.

The purchase of Leopard, a defunct carmaker based in Chuzhou, Anhui province, was facilitated by the Anhui provincial government and other authorities. These entities coordinated resources and communicated with parties including the National Development and Reform Commission and companies with production qualifications.

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The acquisition may allow NIO to purchase two JAC factories, terminating its contract production history. The move aligns with NIO’s efforts to establish a production base in Anhui province, a region instrumental in rescuing NIO from financial troubles in 2020.

In addition to acquiring Leopard, NIO is reportedly considering buying plant assets from its vehicle manufacturing partner, Anhui Jianghuai Automobile Group (JAC). JAC’s asset sale plans, announced on Oct. 19, could help NIO achieve its own EV production status.

Despite the financial implications of taking over all of JAC’s transferred assets, NIO is reportedly in discussions with new investors to alleviate potential cash flow strains, according to 21jingji. The acquisition will not affect NIO’s operations, as per the company’s statement.

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