Second JAC-NIO joint manufacturing base put out to tender

Shanghai (Gasgoo)- JAC Motors is soliciting bids from contractors for a construction project of new energy passenger vehicle (NEPV)-related car body component factory, according to Anhui Hefei Public Resource Trading Center.

The project is launched for building NIO's second joint manufacturing base run by JAC Motors as the capacity of the first factory is short of the sale demand, according to a local media outlet, quoting a person responsible for the project.

NIO EC6; photo credit: NIO

Responding to a request from Gasgoo, NIO declined to comment.

The document from the trading center shows that the project involves an estimated contract price of roughly 350 million yuan ($53.935 million) and is planned to be completed within 370 days.

Covering a footage of 274,800 square meters, the project contains such facilities as a painting workshop, an energy center, a sewage treatment station, a parking lot and other supporting equipment.

For the year of 2020, NIO's deliveries soared 112.6% year on year to 43,728 units. As of Dec. 2020, NIO's cumulative sales amounted to 75,641 units.

William Bin Li, founder, chairman and CEO, noted in August at NIO's second-quarter earnings conference call that the production pace of NIO's Hefei plant had increased to 20JPH from 15JPH. Besides, NIO aimed to raise its vehicle manufacturing capacity to 4,500 to 5,000 units per month under single shift by the end of August or September, Li added.

However, the rising sales require NIO to further ramp up capacity. The startup saw its monthly deliveries reach 5,055 units and 5,291 units in October and November, and for the first time surpass 7,000 units in December.

Li said during the third-quarter earnings call in November that the company was working with suppliers to increase its monthly production capacity to 7,500 vehicles in January 2021.