Chinese electric carmaker Nio has announced a RMB 7 billion ($989 million) cash injection into its business in a big boost for the beleaguered group, reported the Financial Times.
Chief executive William Li said on Wednesday that financial pressure on the New York-listed company was in the past after announcing the investment in Nio China, a newly established entity. The investors are led by state-owned enterprises from the eastern Chinese province of Anhui.
The announcement comes shortly after Beijing extended subsidy support to the struggling electric vehicle sector. This will limit reductions in subsidies by 10% each year, starting this year.
Nio, one of the best-known Chinese electric vehicle start-ups, has been hit hard since the country’s car market suffered its first annual reverse in three decades in 2018. The company’s share price has fallen sharply since its September 2018 listing as it has struggled to stem cash outflow and raise new capital, causing a loss of confidence among some investors in the business.