Exclusive: China's Nio explores investment, tech alliances with Mercedes

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Nio has held exploratory talks with Mercedes-Benz for a tie-up that would see the German automaker invest in the Chinese electric vehicle startup in exchange for technology, two people with direct knowledge of the matter said.

out its EV platforms, battery and motor technology. Leapmotor has declined to comment on the matter.

"They [the legacy brands] have been too successful so that they are not agile in smart EV development. This is a challenge for any CEO who runs a company with hundreds of thousands of employees," Nio's Li told reporters at anin September showcasing its self-developed technologies from batteries and chips to autonomous driving and smart manufacturing.

The source said Mercedes' R&D and strategy teams were largely against the proposals, citing concerns that such a tech tie-up could undermine Mercedes' brand image. Another worry was that as Chinese auto sector entities were the two biggest single shareholders of Mercedes, it could upset shareholder harmony.

Nio, which ranks No.9 among manufacturers of electric and hybrid cars in China, has, in turn, been doubling down on investment in self-developed technologies for key components such as chips and batteries.

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