Nio inks deal with contract manufacturer JAC to hike output

Electric-vehicle startup Nio signed an agreement with its contract manufacturer JAC Motor Co. to increase annual production vehicle capacity to 240,000 vehicles, from 150,000 vehicles in 2020.

The expansion, to be carried out over the next three years, will help Nio meet growing market demand, the company said this week. 

Nio, incorporated in Shanghai in 2014, has launched three products – the ES8 SUV, the ES6 crossover and the EC6 coupe-like crossover. 

In the first four months, it delivered 27,162 vehicles, nearly triple the tally a year earlier. 

Due to the global chip shortage, Nio suspended production at JAC for five days starting March 29. 

Nio only sells vehicles in China but earlier this month the company announced it will begin sales in Norway in September as a first foray in Europe.