Chinese electric vehicle maker Nio announces its plan to build a factory that will manufacture budget EVs under a new brand. These vehicles will be built to export to Europe. The plan to broaden the company’s lineup and expand overseas sales comes as EV sales sharply weaken in China, the world’s largest auto market, following an end in state subsidies for EV purchases.
Nio has been planning to launch more affordable EV products under new brand names after 2024 as part of projects codenamed “Firefly” and “Alps”, according to the people, who declined to be named as the discussions are private. The new factory will be built in Chuzhou city in eastern China’s Anhui province, they said, adding that the plant will make cars, developed under project “Firefly”, which Nio wants to export to Europe where customers prefer small-sized vehicles.
Nio already has two car assembly plants in Anhui’s provincial capital, Hefei city. The carmaker’s prices in Europe range from around 50,000 euros ($53,265) to 91,000 euros, depending on the vehicle’s range and whether customers buy or rent the battery. An official at the Chuzhou Economic and Technology Development Zone, where the Nio plant is to be located did not reveal the details further.
Chinese EV players, most of which are still loss-making, are ramping up efforts to increase their market share, as the usage of EVs rises rapidly in China, where more than a quarter of the new cars sold in January were either pure electric or plug-in hybrids. While Tesla relies on two models for the majority of its sales in China, a strategy that helped keep costs under control, many Chinese brands offer more models to appeal to a wider consumer base.
Nio expansion
In October the automaker announced its plans to expand. Nio unveiled details of its products and services for Germany, the Netherlands, Denmark, and Sweden at its European launch event in Berlin. This expansion follows its entry into the Norwegian market last year. Three new models derived from its Nio NT2 platform, the ET7, EL7, and ET5, will be available together with innovative subscription models to encourage EV use. Through its pioneering products and services, Nio will build a community to deliver the best user experience.
The three NIO models for Europe are derived from Nio’s latest NT2 platform, engineered to create an experience beyond expectations thanks to their design, performance, intelligence, safety, and flexible battery solutions. Nio’s ‘Design for Autonomous Driving’ and ‘second living room’ concepts have led to the use of innovative and environmentally friendly materials, underlining the exquisite, pure, and contemporary design Nio is renowned. Performance is impressive too; 0-100 km/h in four seconds and a 100 km to zero stopping distance of 34 meters.
