Chinese automaker Nio aims to introduce a more affordable electric vehicle sub-brand in Europe in 2025, Reuters reports, citing president and co-founder Qin Lihong.
This announcement occurred after almost two years of anticipation about Nio’s promised Firefly sub-brand.
Report highlights
President and co-founder Qin Lihong told a media conference online yesterday about the automaker’s plans to finally launch the Firefly sub-brand in the European market as early as 2025.
In addition, he confirmed that Firefly and its other planned sub-brand Alps will focus on family cars. However, the former will produce smaller models than the other Nio sub-brand.
Unfortunately, the Nio boss omitted to share pricing targets for these brands.
Early announcements
Nio initially announced plans to develop a cheaper sub-brand in August 2021 as it aims to penetrate the lower-priced mass market. It gave the brand the codename Alps in subsequent remarks, as reported by CnEVPost.
President Qin introduced another sub-brand it plans to launch along with the Alps, codenamed Firefly, on January 26 during a special event with Nio car owners. At that time, Nio’s boss clarified that it would first debut in the European market and start sales in Q3 2024.
Considering the most recent announcement, it is clear that Nio delayed the Firefly’s market launch in Europe to 2025. However, the local report suggests that the Chinese market expects the Alps to hit a price range of RMB 200,000 ($28,130) – RMB 300,000. Meanwhile, Electrek reported that Firefly is expected to target a price point of RMB 200,000.
Chinese automakers venture into the EU
Numerous Chinese electric automakers have been swamping the European market as demand apparently wanes in China.
They also intend to take advantage of the affordability of its models compared to their Western rivals in the region.
As a result, the European Union initiated a probe into Chinese electric vehicle imports to ensure that they do not violate competition rules with their extremely cheap models.
Nio currently sells its models at a price point above 298,000 yuan ($42,000) in its home market, positioning it to compete with luxury brands like Mercedes-Benz and BMW. However, Tesla’s aggressive pricing strategy continues to impede them from achieving record growth.
Nio recently laid off 10% of its workforce due to the losses it suffered from the intensifying price war. It is also contemplating the spin-off of several business units, including its battery production, to cut costs. Nio recently partnered with major players to gain financial support for its battery-swapping venture, including Geely and China-owned Changan.
