Why is NIO associated with JAC Motors?
1 Answers
This is because all of NIO's vehicle models are produced by JAC Motors under contract manufacturing. Contract Manufacturing Model: In December 2018, the Ministry of Industry and Information Technology (MIIT) officially recognized the contract manufacturing model at the policy level in the 'Administrative Measures for the Access of Road Motor Vehicle Manufacturers and Products.' However, it also imposed certain requirements on companies opting for contract manufacturing. For instance, new automakers without production qualifications must first manufacture 30,000 vehicles through contract production before they can apply for qualifications and build their own factories. Therefore, NIO, lacking automotive production qualifications, had to choose a contract manufacturer to fulfill the 30,000-unit production requirement before proceeding with subsequent operations. NIO's Technology: Apart from the production qualifications provided by JAC, most of the technology originates from NIO itself. NIO established its China headquarters in Hefei, setting up research and development, sales, and production bases to create an operational system centered in Hefei. The manufacturing processes also differ significantly from JAC's production standards.