NIO set to launch new global budget EV brand

Ambitious Chinese car-maker NIO is preparing to launch a new global budget-oriented electric vehicle brand, starting in Europe as early as next year – and has confirmed that right-hand drive is part of its strategy.

NIO CEO William Li confirmed to media that the new brand – which is being developed under the Alps codename – will focus on producing “family car” models.

He said final validation prototypes were almost ready to hit the road and that European tastes were a prime development focus.

“It’s been over a month since the Alps VB [verification build] was completed. [It] is focused on the family market, which means product definition will be easier and clearer [than the NIO brand],” said Li.

“In contrast, high-end brands need to offer some emotional elements.

“Starting next year, you will see a different NIO as it introduces a second brand. The family market is distinct from the high-end market. We are using our latecomer advantage.

“In the past, once the VB was completed, it would quickly enter SOP [start of production]. But this time, we’ll wait a bit, and in the end we will come in and disrupt the game,” he said.

Under the new strategy, Alps will launch with three models and sell cars direct to customers online, using large distribution centres for deliveries.

When asked about how the Alps EVs would be positioned, Li said that from now on a NIO would not be priced lower than its current ET5, which sells for €47,500 ($A77,800).

Li did not confirm how cheap the Alps brand would go but did confirm that right-hand drive is part of the plan, which opens up potential for the UK, Australia and other right-hook markets.

“Right-hand drive prototypes do exist, but we will first focus on understanding and establishing ourselves in [other] European markets,” he said.

Not stopping there, NIO is also working on a second Euro-focused budget brand, developing vehicles under the Firefly banner, while it will also continue to produce high-end models aimed at the likes of Audi, BMW, Mercedes-Benz and Porsche.

“We must conquer the executive market, otherwise both profits and brand recognition will be limited,” said Li.

“We understand that this market is not large, with an annual volume of around 100,000 units. However, the profit from selling one Mercedes-Benz S-Class is equivalent to selling several dozen A-Classes.”

An anticipated Mercedes-Benz EQS rival will serve as technological flagship for the NIO brand, showcasing its future tech.

Finally, NIO will also address the growing demand for people-movers in China, which will be based on its incoming next-gen NT 3.0 platform.

All models in future will be offered with its battery-swap tech, with Li suggesting NIO had already licenced the brand’s innovative alternative to long charging times to another car-maker.

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