NIO Inc. (NYSE:NIO) announced on Wednesday that it is making its Thailand debut through a new market partnership with Thonburi Group.

The move marks another step in Nio's Southeast Asia strategy, with Onvo and Firefly slated to enter the Thailand market via its Thonburi partnership, according to CnEV Post, which cited local media.

The partner operates one of Southeast Asia's most established Mercedes-Benz assembly facilities through its automotive arm.

Also Read: NIO And Li Auto Fall As Beijing Tightens Grip On EV Exports

Firefly confirmed it plans to enter both the United Kingdom and Thailand in 2026. Nio aims to use Thonburi's manufacturing and commercial infrastructure to accelerate market penetration in the region.

Thonburi Group has supported automotive manufacturing in Thailand for decades. Its industrial capacity and dealer ecosystem give Nio access to production capabilities and regional distribution.

Analyst Downgrade Adds Caution

Macquarie analyst Eugene Hsiao downgraded Nio from Outperform to Neutral. He also reduced his price forecast to $5.30 from $6.70, citing regional challenges.

Broader EV Landscape

Investors tracking Nio's Asia expansion may also follow XPeng Inc. (NYSE:XPEV) and Li Auto Inc. (NASDAQ:LI).

Li Auto stock fell on Wednesday after the Chinese EV maker reported a steep decline in its fiscal third-quarter 2025 results, which were weighed down by lower deliveries, margin compression, and costs associated with a major vehicle recall.

Quarterly revenue fell 36.2% year over year to 27.4 billion Chinese yuan, though it came in slightly ahead of the analyst consensus estimate of $3.76 billion.

Price Action: NIO shares were trading higher by 0.73% to $5.540 at last check Wednesday.

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