Can NIO Auto Benefit from the Porsche’s Investment in NIO Capital?


The NIO logo recently appeared in the list of companies that Porsche has established cooperative efforts with – something that fueled rumors and speculations that the esteemed German car company has invested in NIO Automobile. Porsche was quick to clarify that Porsche Ventures has bought into NIO Capital, not NIO Auto.

Porsche Ventures is a subsidiary of Porsche with venture capital as its core business. Under Porsche Ventures, 150 million euros will be utilized annually to participate in startups with focus on companies in Europe, Israel, the USA, and China, starting in 2019.

NIO Capital is a market-oriented private equity investment institution. The company’s investment directions are in the fields of electric vehicles and related technologies; intelligent driving, connected vehicles, and travel; new energy and energy Internet; and new materials and advanced manufacturing.

At present, NIO Capital has invested in 17 companies including Chelian Tianxia; Tattoo Carpooling; Rongbai Lithium Battery; Kangde Composites; Lianying Laser; Momenta; Shouqi Auto;; etc., with an investment amount between 1-3 billion yuan. Porsche Venture is bullish on the areas where NIO Capital has invested, hence, its decision to invest in the company.

NIO Capital and NIO Automobile are two independent companies. NIO Capital has no investment in NIO Automobile and constrained by financial woes as it is, the latter will not be able to get financing from the former. The investment is a welcome development for NIO Capital but has, in no way, an effect on easing the financial constraints of NIO Automobile.