Chinese electric vehicle (EV) maker Nio has announced plans to launch its affordable brand Firefly in Europe in 2025.
Firefly, along with the company’s other mass market brand Alps, will produce cars for families, Nio president Lihong Qin said. Firefly will offer smaller models, he added, without giving details of pricing for the two brands.
The development comes as a wave of Chinese EV makers enlarge in Europe amid slowing demand at home.
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China’s EV firms are looking to capitalise on a cost advantage versus Western rivals, which have been slower to adopt the new technology. The European Union, however, is investigating Chinese EV imports to see if they breach competition rules.
Nio, which currently competes with EVs offered by premium carmakers appreciate BMW, and Mercedes-Benz at a price point above 298,000 yuan ($42,000) in China, has been facing expanding losses as a price war started by Tesla weighed on its profitability.
The company has laid off 10% of its workers, is considering spin-offs of units such as its battery manufacturing business, and has formed partnerships to help fund ventures such as battery swapping as it looks to cut costs.
The partnerships – struck in November with Geely and state-owned Changan Automobile – will involve building a new battery pack and chassis architecture together with the carmakers to use as a blueprint for future partners, Qin said.
Nio has since signed a third partnership agreement, but it is too soon to disclose details, he added.
- Reuters, with additional editing by Vishakha Saxena
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