Nio plans to launch a new mass market brand this year to target lower cost segments to lift sales and economies of scale.
The automaker so far has targeted premium BEV segments with vehicles priced from US$46,000 to compete with global BEV leader Tesla, but more Chinese automakers are now moving into lower segments to drive up demand.
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Nio sales fell 12% to 18,200 vehicles in the first two months of 2024 after volume rose 31% to 160,000 in full year 2023. Cumulative sales since startup are 468,000.
Nio CEO William Li said his company planned to launch the new brand in the second quarter this year under its Alps programme with the first model to be unveiled in the third quarter and deliveries to follow in the fourth.
Li said the first model would be an SUV in the same segment as the Tesla Model Y but would cost 10% less and come with a swappable battery while the second would be a vehicle designed for large families.
Nio booked a net loss of CNY20.7bn (US$2.9bn) last year though revenue increased 13% to CNY55.6bn (US$7.8bn).
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By GlobalDataChief financial officer Steven Feng said: “Moving into 2024 we will prioritise our business objectives, improve system capabilities and optimise cost management.”
