Nio has shifted its strategy for the launch of its third brand, codenamed Firefly, opting to debut the brand in China before its European launch. The decision comes as Nio aims to accelerate the introduction of its new brand, according to a report from local media outlet 21jingji. Firefly’s inaugural model is expected to make its first appearance in China by the end of this year, with a subsequent release in Europe in the first half of next year, as per the report, which cites multiple sources. The sub-brand’s mobile app is anticipated to go live in December.
Jin Ge, an assistant vice president at Nio, heads the Firefly business unit, reporting to Nio founder, chairman, and CEO William Li, the report stated. The new brand, as confirmed by Nio co-founder and president Qin Lihong in January 2023, primarily targets the small car and mini car market segments. The initial Firefly model is projected to be priced between RMB 100,000 ($13,800) and RMB 200,000, with its European market debut expected in the third quarter of 2024, according to Qin’s earlier statement.
Despite the brand’s products being ready earlier this year, the launch of Firefly’s new model has been delayed until the second quarter of 2025, as per Qin’s comments in a May interview with local media. This decision was made in consideration of the overall brand sequence. Nio officially launched its Onvo (Ledao in China) sub-brand on May 15, initiating pre-sales for the L60, the first model under the brand, at a pre-sale price of RMB 219,900. This price positions the Onvo L60 RMB 30,000 lower than Tesla’s (NASDAQ: TSLA) Model Y. Deliveries of the L60 are scheduled to begin in September.
Nio’s brand lineup places its main Nio brand in the market priced above RMB 300,000, the Onvo brand in the RMB 200,000 to RMB 300,000 range, and the Firefly brand targeting the market below RMB 200,000. In a live video stream on short-video platform Douyin on March 14, Li likened Firefly’s role to that of Mini within BMW, emphasizing that although Firefly focuses on small cars, it will meet five-star European safety standards and support battery swap. Nio’s decision to prioritize the launch of Firefly in China is seen as a response to the intense competition in the country’s electric vehicle market.
The report from 21jingji suggests that Nio’s internal teams have felt pressure from external market conditions, particularly amidst a price war in the EV sector. The launch of the Onvo brand has reportedly alleviated some of Nio’s concerns about sales. Pre-orders for the Onvo L60 exceeded expectations, with Onvo president Ai Tiecheng stating in a May media interview that pre-orders were 2-3 times higher than anticipated. The successful launch of Onvo has boosted morale within the Nio team, allowing the Nio brand to focus on the high-end market while the second brand competes effectively in the mainstream market. Firefly is expected to serve a similar strategic purpose. Firefly is poised to target the EV market priced between RMB 100,000 and RMB 200,000, which represents the best-selling segment for EVs in China with the highest user demand.