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The new plant will have a capacity of up to 600,000 units per year, which will raise its total capacity to 1 million units, according to Reuters.
$NIO Inc (NIO.US)$ has been given the go-ahead to build a third factory in China, which would boost its total capacity to 1 million vehicles, almost the same as Tesla's Shanghai plant, Reuters said today, citing three people familiar with the matter.
The latest approval for the 600,000-unit-a-year plant is a major victory for Nio, which was granted a license to build cars late last year, the report said.
Nio has already begun construction of a third plant -- the F3 -- but it is unclear when the plant will begin mass production, the sources said.
The F3 plant, located in the city of Huainan in China's eastern province of Anhui, will mainly produce cars for Nio's newly launched affordable car brand, Onvo, the sources added.
Nio told Reuters that construction had already begun on a third plant, which will have a capacity of 100,000 vehicles per shift.
The company said in a statement that the expansion plan is aimed at meeting the growing demand for Nio and Onvo branded cars and producing newly launched vehicles.
"The capacity of our existing plants won't be enough to meet market demand. There is no overcapacity with Nio," Nio added.
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