Chinese electric vehicle company Li Auto has set up a new company in Beijing with a registered capital of RMB 1 billion ($153 million), further reinforcing earlier rumors that it might build a second factory in the city where it is headquartered.
The new company is called Beijing Li Auto Ltd. and is legally represented by Li Auto co-founder and president Shen Yanan.
Its business scope includes manufacturing new energy intelligent vehicles, new energy vehicle mobile charging vehicles, and, manufacturing new energy intelligent vehicle powertrain systems.
Local media outlet iautodaily.com said on April 2, citing sources familiar with the matter, that Li Auto is planning to build a second factory, most likely in Beijing, where the company is headquartered.
The report said it did not get a completely positive answer after multiple inquiries, but "all indications are that Li Auto will take a new step in its strategy."
When CnEVPost asked Li Auto for confirmation, a spokesperson said no information had been received.
A factory located in Beijing is not out of the question to happen, iautodaily.com reports.
Among Beijing's existing layouts, BAIC BluePark has seen sales drop more than 80% year-over-year over the past year since its target market has focused on the general consumer.
BAIC BluePark's new energy brand, Arcfox, has a huge gap in product competitiveness and sales compared to other leading new energy vehicle companies.
Li Auto is based in Beijing and has achieved some success and recognition. If Beijing helps it invest in a factory, it will be proof of its "bottom line," the report said.
Li Auto's current factory is located in Changzhou City, Jiangsu Province.