After NIO’s recent reveal of its ONVO brand launching its ONVO L60 SUV, the company is receiving skyrocketing electric vehicle (EV) demand. As a result, NIO will start construction on its third EV plant.

To keep up with production demands, NIO president and co-founder Qin Lihong has confirmed to Blue Whale News that the company’s current production capacity of its existing two plants has reached its limit and the third plant will now start construction.

Regarding the third plant, NIO will increase the total production capacity to 1 million from its initial capacity of 600,000 EVs according to Reuters. Furthermore, the third plant would have the capacity to produce 100,000 units annually on a single shift.

NIO’s decision to construct its third plant follows the company’s record-breaking month in May with 20,544 units sold, marking an increase of 234% from the previous year. Additionally, the month of May also saw deliveries exceed 500,000 units with 12,164 electric SUVs and 8,380 sedans delivered.

Recently, NIO has still committed to expanding its European operations despite concerns about tariffs on Chinese EVs by the European Commission, where the company’s ES8, ET7, EL7, ET5, ET5T, and EL6 models have entered the European market. Notably, NIO’s Hungary plant has also been pivotal in the company’s strategy of expanding in Europe through localizing production.

As NIO pushes further with the construction of its third EV plant, the company’s actions to meet demands for buyers of its EV models will be answered through initiatives like this. In addition, the success of its ONVO brand will also further answer buyer demands as it will also be manufactured in this third plant.

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