(JW Insights) Oct 23 -- Chinese carmaker Jianghuai Automobile Group(JAC) is selling two of its factories, both of which produce Nio electric cars, reported Yicai on October 20.

JAC is selling its third plant and Xinqiao plant, also known as F1 and F2 that both manufacture Nio electric cars, for RMB4.5 billion ($615 million) to optimize its asset structure, the Hefei, eastern Anhui province-based carmaker said on October 19.

JAC’s decision will not affect Nio’s manufacturing and operations, a manager at the EV startup, which is also headquartered in Hefei, told Yicai.

Nio’s rival EV maker Li Auto acquired a factory belonging to Beijing Hyundai, the joint venture between South Korea’s Hyundai Motor and BAIC Motor, in June 2021 and spent RMB6 billion ($822.6 million) on renovating it. The firm was granted a production license for new energy vehicles at the Shunyi plant by the Ministry of Industry and Information Technology in June, according to Yicai report.

(Gao J/Yuan XY)