Nio China, a Chinese electric car maker just got a huge US$989 Million (CN¥ 7 billion) investment which it says will further help smoothing out its cash flow and guarantee future product developments according to the company’s CEO on Wednesday.

The new investment is expected to further boost product development as well as researches to further enhance the company’s advantage and make it more competitive in the industry. William Li, the CEO of Nio says in a news conference that this investment will not impact its existing partnerships with Changan or GAC or the ownership structure of its New York-listed company.

Nio got its investment from investors such as Hefei Construction Investment Holding (Group) Co. Ltd which is state-controlled as well as others such as CMG-SDIC Capital Management Co. Ltd and Anhui High and New Technology Industrial Investment Co. Ltd.

CEO Li further narrates how the Coronavirus pandemic has had a negative impact on Nio’s supply chain as well as sales in the first quarter this year which was the time China was heading towards the peak of the pandemic but Li said the negative impact had passed.

As of the first three months of the year, Nio was able to deliver as much as 3,838 vehicles and sales production were recovering in March unlike February. In a statement, the company is expected to inject its core businesses and assets in China which is valued at CN¥ 17.88 Billion (about US$2.6 Billion) into Nio China and invest about CN¥ 4.16 billion (about US$590 Million) in it.

Nio will hold 75.9% of the new firm, and investors the rest, once the transactions are completed. The headquarters of Nio China is planned to be located in the Hefei Economic and Technological Development Area. Nio would consider expanding capacity in the eastern city of Hefei if sales demand grew.

As of February, the company announced it signed a framework agreement which will allow the Hefei City government to raise funds of about CN¥ 10 billion (about US$ 1.4 Billion ). Nio plans further developments along with the Hefei government, Li added, but did not give further details.

With Tesla already in China, the electric car industry might just be heading far higher-up which will further enhance a much healthier competition whereby consumers get to pick which vehicle is better suitable for them.