NIO new plant to start production in third quarter of next year

Hefei (Gasgoo)- NIO’s second factory, located in Hefei-based NeoPark, will start vehicle production in the third quarter of next year, William Bin Li, founder, chairman and CEO of NIO, revealed at an industry conference. The construction of the new factory has started.

Photo credit:NIO

NeoPark, a smart electric vehicle industry park at Xinqiao, Hefei, Anhui province, aims to become a hub for hundreds of key supporting enterprises and a highly-clustered full-fledged industry chain. Therefore, automotive parts, like battery packages, can be supplied by other enterprises within the park, reducing the cost of logistics.

“Vehicles made in Hefei can be moved to other cities with the shortest average logistics distance, only 901km. So cost per vehicle can be 3,000 or 4,000 yuan less than that of BMW, Audi and Mercedes Benz vehicles,” William added.  

In February 2021, NIO announced that it entered into a further collaboration framework agreement with the municipal government of Hefei, Anhui province, where NIO China’s headquarters is located. Under the framework, the two would jointly build a world-class smart electric vehicle industrial campus. According to William, Hefei promised to use the proceeds obtained from its investment in NIO’s stake to support the NeoPark and build a world-class smart electric vehicle industry cluster.

At the end of April, 2021, NeoPark officially kicked off and expects to be an innovation highland for top-notch talents, to accommodate over 10,000 R&D personnel and 40,000 technical workers. With an annual production capacity of 1 million vehicles and 100 GWh battery, NeoPark is expected to realize an annual gross output of RMB 500 billion.