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Abu Dhabi-backed firm to invest $740m in Chinese EVs

Nio Inc
Nio’s cumulative deliveries of electric vehicles reached 333,410 as of May 31, 2023

CYVN Holdings, an investment firm owned by the Abu Dhabi government, will invest about $738.5 million in Nio Inc, a Chinese electric vehicle maker.

As a result of the deal, CYVN will own a seven percent stake in Nio, the Chinese firm said, adding that the holding will entitle the Emirati investment firm to nominate one director to Nio’s board.

The move comes at a time when the UAE is aiming to increase the share of electric vehicles (EVs) to 50 percent of total cars on its roads by 2050 in a bid to drive green mobility, minister of energy and infrastructure Suhail Al Mazrouei said last month.

Nio and CYVN will jointly pursue global business opportunities at the closing of the investment deal.

“Our strategic investments in Nio are driven by its proven technological capabilities in the smart electric vehicle market,” said Jassem Al Zaabi, chairman and managing director of CYVN Holdings.

The EV maker’s deliveries rose about 20 percent in the first quarter from 25,768 units handed over to customers a year earlier.

However, the company’s cash and cash equivalents fell to 14.76 billion yuan ($2.15 billion) in the first three months of the year, down from 19.89 billion yuan at the end of the fourth quarter of 2022.

Nio delivered 6,155 vehicles in May 2023, consisting of 2,396 premium smart electric SUVs, and 3,759 premium smart electric sedans, the company said in a statement. Cumulative deliveries of vehicles reached 333,410 as of May 31, 2023.

In addition, the Chinese EV maker plans to launch a new vehicle model based on NT2.0, ET5 Touring, a mid-size smart electric tourer. It will start delivery of the tourer to users this month.