Good news for NEVS has not been that many in recent months. They have rarity value, but here comes one. The NEVS subsidiary National New Energy Vehicle Co.Ltd. received the MIIT (Ministry of Industry and Information Technology) production license this week.
An important step for NEVS, because without a license there is no production. The licenses for the production of electric cars in China are coveted - and limited. The Chinese administration limits itself to a few companies. Instead of many small manufacturers, some of which operate only at the provincial level, companies now rely on a few but internationally competitive companies. The license can make some changes to the positive for NEVS. The financing of the company should be easier with the receipt of the production permit.
NEVS receives the 10. License of MIIT
So far, only nine domestic manufacturers have been licensed by the MIIT and the NDRC. These are BAIC BJEV, YUDO AUTO, JMEV, ZHIDOU, Changjiang EV, Qiantu Motor, Hozon Auto, Chery New Energy and Jinkang New Energy. NEVS is the 10. Brand, which receives the green light from both authorities.
As usual, there is no official press release. Chinese and local Swedish media report about it, with reference to NEVS or MIIT. NEVS itself reported the event on Facebook.
Completion of the Tianjin plant is expected by the end of the year. Then the production could start. An interesting answer to the question would be what will happen to the previous, non-binding orders. Are they still valid? 270.000 electric cars have been reported as ordered by various customers in the past, but this is a while ago.
If NEVS really starts manufacturing in January 2019, then you have missed your own target again. Because actually you wanted to start production in this quarter. Even if NEVS brings the 9-3 EV to market, and the odds have now improved, it is unlikely that large volumes will be forthcoming. The lack of availability of batteries, among which many startups suffer, should also limit the possible number of units at NEVS. Own battery production, already considered in the past, would be an advantage.