NIO and CYVN Holdings Announce New R&D and Business Initiatives

NIO and CYVN Holdings Forge Strategic Partnership to Establish R&D Center in UAE

On October 5th, NIO and its strategic investor CYVN Holdings inked a strategic cooperation agreement, announcing that the two parties will jointly establish an advanced technology R&D center in Abu Dhabi, United Arab Emirates, focusing on the research and development of intelligent driving and artificial intelligence technology.

Establishment of R&D Center and Joint Venture

In addition, NIO announced that the two parties will set up a joint venture, NIO Middle East North Africa Company, to conduct business locally, and the deliveries will begin in the fourth quarter of 2024. The two parties will jointly develop a brand-new model tailored to the local market the local market, reports says.

In this way, NIO will be able to further expand its global R&D layout and promoting technological innovation in the Middle East and North Africa.

Background of CYVN and Investment in NIO

CYVN is an investment institution owned by mainly by the Abu Dhabi government in the United Arab Emirates, focusing on investments in the smart mobility industry. Last year, CYVN invested in NIO for two times, totally investing $3.3 billion. This cooperation is part of NIO's global expansion strategy.

Expanding Chinese Automotive Influence

China has become the world's largest car exporter in 2023. In recent years, Chinese carmakers set up business in the Middle East market one after another, including Changan, Xpeng, Great Wall Motors, Chery, and Neta etc., presenting a great potential in the Middle East and North Africa market. The Middle East market is a key part of NIO's globalization strategy as well.

NIO’s Global Traction

Since 2021, NIO has started to carry out its global expansion, and its global business has made significant progress. According to NIO's plan, by 2025, it will enter 25 countries and regions.

NIO has already brought six mass-produced models into European market, and the company has plans to introduce its sub-brand "ONVO (乐道)" and its pure electric mini-car brand which is code-named "Firefly" to Europe.