As China’s demand declines as a result of the end of government subsidies, Nio will focus on selling affordable EVs in Europe.
Chinese electric-vehicle maker Nio plans to build a factory to produce budget EVs under a new brand for export to Europe from as early as next year, three people with knowledge of the matter said.
The decision to broaden the company’s product line and increase overseas sales comes as EV sales in China, the largest auto market in the world, have fallen off significantly as a result of the elimination of 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 European consumers favor small-sized vehicles, so Nio wants to export there.
Nio already has two car assembly plants in Anhui’s provincial capital, Hefei city.
Depending on the vehicle’s range and whether customers choose to buy or rent the battery, the automaker’s prices in Europe range from about 50,000 euros ($53,265) to 91,000 euros.
An inquiry for comments was not immediately answered by the business. An official from the Chuzhou Economic and Technology Development Zone, where the Nio plant will be built, declined to comment.
The development was first covered by Chinese media outlet Cailianshe.
Chinese EV players, most of which are still losing money, 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 full-electric or plug-in hybrids.
Many Chinese brands offer more models to appeal to a wider consumer base, while Tesla relies on just two models for the majority of its sales in China, a strategy that helped keep costs in check.
Six models are currently available from Nio, and the company intends to introduce five more this year. The Nio brand is set up to compete with BMW, Mercedes, and Audi in the premium segment.
William Li, the chairman of Nio, also declared on Tuesday that the business would speed up the development of its network of battery exchange facilities in China.
You may want to know:
- Worship the Electric Daddy Before Driving? Xpeng Motors Urgently Apologized
- The Interior of the 2024 Hyundai Kona Has Been Significantly Improved
- Lose 117,800 for Every Car Sold! Where is NIO’s “Future”?
- Xpeng P7i Officially Announced That the New Car is About to Go on the Market These Three Details You Have to Know
- FBI Investigation into Fatal Tesla-firetruck Crash
