Source: E-Cell, IIT Bombay

The China-based internet giant ‘Tencent’ not very long ago bought a 5% stake in the U.S.-based electric car making company. In March, Tencent Holdings Inc. emphasized its vote of confidence in the position of the automaker ‘Tesla Motors’ in China – the most populated country in the world – by investing a large amount of money. However, now it looks like Tencent has an interest in other automakers as well – one of them being ‘Nio.’

Nio expects to deliver the electric SUVs next year

Recently, the electric car making startup ‘Nio’ made a huge move to challenge the U.S.-based electric car making giant in China by unveiling its new electric SUV. The country China is rapidly becoming the most important market for companies that are pursuing battery-powered cars. The U.S.-based automaker is one such automaker.

On Wednesday, the China-based startup company released its electric SUV – the Nio ES8 – at the Shanghai motor show. According to the reports, the Chinese electric car making company said that its vehicles will go into production by the end of this year. Also, it said that the vehicles will be made especially for the Chinese market.

The China-based electric vehicle maker added that the deliveries of the electric SUVs are expected in 2018. The country ‘China’ had more electric car sales than the United States and Europe in both 2015 and 2016. As the government is continuing to tighten fuel emissions standards, this trend will most probably not slow.

Tesla has tripled its revenue to $1 billion in China

Tesla Motors – the largest electric car making company in the world – has been making several moves as well to gain some traction in the country. In 2016, the EV maker tripled its revenue in the country to $1 billion, however, it still makes more money in the United States.

Also, one of the biggest and most recent investors of the electric car maker – Tencent Holdings Inc. – is investing in the China-based startup ‘Nio’ as well. The Chinese startup ‘Nio’ is based in Shanghai. The Shanghai-based electric car maker is smart to introduce a large electric SUV at a time when demand for the EVs is on the rise among many rich and affluent Chinese consumers.

The Chinese EV maker has offices in San Jose and Shanghai. In addition to this, the China-based electric car making company led in the United States by former Cisco CTO Padmasree Warrior.