Chinese scooter maker Niu Technologies is said to be acquiring a BAIC BluePark New Energy plant in Changzhou, sparking discussions that it will also join the car manufacturing boom.

Niu Technologies wants to enter the new energy vehicle industry, and BluePark's poor performance in recent years makes the acquisition of BluePark's factory an opportunity for it, local media iautodaily.com said, citing sources familiar with the parts supplier.

But Niu Technologies CEO Li Yan responded on March 15 that the news had nothing to do with the company and was a media misunderstanding.

Li added that the company has been focusing on two-wheeled electric vehicles and has no plans to get involved in four-wheeled electric vehicles.

However, it is worth noting that late last year there were rumors that Niu Technologies founder Li Yinan's startup team was developing an electric vehicle with extended-range technology, similar to Li Auto's Li ONE.

At the time, it was reported that Niu Technologies' first model was an SUV priced at RMB 200,000 ($30,734).

In 2018, Niu Technologies incubated its new energy vehicle project and established Niuchuang Technologies, an independently operated company.

The project has 155 employees and over 350 outsourced, including R&D, industrial design, autonomous driving, and brand marketing, with team members from automotive and internet companies in various countries.

Jiangsu Niuchuang New Energy Technology Co., Ltd. was incorporated on Dec. 3 as a foreign-owned enterprise with a registered capital of $50 million, according to the government website of Changzhou, Jiangsu Province.

Niu Technologies is unlikely to acquire BluePark because of the latter's relatively high asset value, the report said, citing sources at the Beijing Development and Reform Commission.

As of the end of last year, Niu Technologies held cash flow, equivalents, time deposits, and short-term investments totaling RMB 1.1 billion. It is widely believed in the auto industry that at least RMB 20 billion is needed to build cars.

Niu Technologies sold 600,000 two-wheeled electric vehicles globally in 2020, up about 43 percent from 2019, with the domestic market contributing about 95 percent of sales.

Niu Technologies has made it clear since its inception that it is not just a two-wheeled electric vehicle company, but a smart urban mobility solution provider.

Niu Technologies released the 5G electric motorcycle RQi and the self-driving three-wheeled electric motorcycle TQi in early 2020.

Former Huawei VP and Niu founder chooses extended-range electric vehicle for his new venture