In a recent report by Reuters, NIO revealed its plan to enter the European market with a sub-30,000 euros ($33,060) priced model. Founder, chairman, and CEO William Li disclosed this information to German magazine Der Spiegel, emphasizing NIO’s intention to directly compete with Volkswagen.
Li, without providing further details, stated, “Yes, in terms of price that means we are also attacking Volkswagen more strongly than before,” as quoted by Der Spiegel. This move aligns with NIO’s broader strategy of targeting the mass market by developing two sub-brands known as ALPS and Firefly.
During a face-to-face communication with NIO owners, co-founder and president Qin Lihong confirmed the ongoing development of the ALPS sub-brand, with deliveries expected to commence in 2024. Additionally, the Firefly project, primarily aimed at European consumers, is in the planning stage.
Qin further revealed that a smaller NIO model is currently in development and is set to debut in Europe during the third quarter of 2024. CnEVPost reported on January 31 that the Firefly project’s assembly plant, referred to as F4, will be located in Chuzhou, Anhui province. The F4 plant will not only produce vehicles but also manufacture some of their components. Initially, the brand intends to export vehicles to Europe, with production scheduled to begin in the third quarter of 2024. The source also disclosed that the Chuzhou plant will manufacture small cars priced around 100,000 yuan (approximately $15,000).
Meanwhile, NIO’s existing F3 plant, located in Hefei, will continue producing models under the ALPS sub-brand. These models, codenamed ALPS, are aimed at the mid- to high-end market segment, with prices ranging from RMB 150,000 to RMB 300,000. Another report by Cailian, citing insider information, revealed that NIO’s fourth vehicle assembly plant, designated for the Firefly project, will also be based in Chuzhou, Anhui province. The Firefly model, targeting the Volkswagen POLO market, will be introduced in Europe and support battery swapping, a feature common to NIO’s other offerings.
While the Firefly models may have fewer advanced autonomous driving features compared to NIO’s main brand and the ALPS program, they are expected to outperform European counterparts in terms of intelligent capabilities, according to the source.
Notably, NIO is in the process of transitioning its models from the NT 1.0 platform to the NT 2.0 platform. As reported by Yicai, the ALPS project, targeting a price range of around RMB 200,000, will be based on the upcoming NT 3.0 platform. Yicai also highlighted that NIO’s main brand models may be too large for European consumers, making the Firefly project’s smaller models more appealing to the European market.
NIO’s strategic move to introduce affordable EVs priced under 30,000 euros in Europe demonstrates the company’s determination to challenge Volkswagen’s market share. With plans to launch both the ALPS and Firefly sub-brands, NIO aims to establish a strong foothold in the mass market while leveraging its technological advantages in the EV industry.
