Nio JAC

With full control over all core processes of vehicle production, Nio will be able to improve its manufacturing efficiency and have more leverage in the fierce competition.

Nio acquired Leopard in a government-coordinated buyout to qualify for vehicle production, and potential further acquisitions of two of JAC's plants will allow it to end its history of contract manufacturing, local media said.

JAC's plan to buy Nio's assets may be to deepen its interest connection with Nio and solidify their vehicle OEM production relationship, industry watchers say.

JAC did not give a specific reason, but said the move will help it deepen its strategic partnership with Nio.

The move means Nio's stake in Jianglai, which has car manufacturing credentials, is the same as JAC's, and may mean it has a greater say in the plants the two jointly built.

Nio and JAC Motors signed an agreement on March 27 to establish the Jianglai Advanced Manufacturing Technology (Anhui) Co as planned.

JAC announced Thursday that it will form a joint venture with Nio Holdings Ltd., sparking speculation that the latter is going into the mass market. But that may not actually be the case.

The company plans to have a registered capital of 500 million yuan ($77 million ), with JAC contributing 51 percent and Nio 49 percent.

The body shop at the Anhui JAC factory of Chinese EV maker Nio is automated to a 97.5% level, allowing the body shop, which is capable of rolling out 20 complete vehicles an hour, to be operated by only a dozen workers, according to local media Anhuinews.com.