Chinese electric vehicle manufacturer, Nio Inc, is planning to build a new factory in Chuzhou city in China’s Anhui province, to produce affordable electric vehicles (EVs) under a new brand, for export to Europe as early as next year. The move comes as EV sales in China, the world’s largest auto market, have weakened significantly following the end of state subsidies for EV purchases.
According to insiders familiar with the matter, Nio intends to expand its product line-up and overseas sales with a series of new affordable EVs, to be developed under projects codenamed “Firefly” and “Alps”, and launched under new brand names after 2024. The Chuzhou factory will produce cars under the “Firefly” project, which the company wants to export to Europe, where there is a preference for smaller-sized vehicles.
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Nio currently has two car assembly plants in Anhui’s provincial capital, Hefei city, and prices in Europe range from around €50,000 ($53,265) to €91,000, depending on the vehicle’s range and battery type. The company did not respond immediately to requests for comment on the matter.
While Tesla has relied on two models for the majority of its sales in China, keeping costs under control, many Chinese EV brands offer more models to appeal to a wider consumer base. Nio already has six models under the Nio brand and plans to launch five more this year, positioning the brand in the premium segment to compete with BMW, Mercedes, and Audi.
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Meanwhile, Nio Chairman, William Li, said the company would accelerate the expansion of its network of battery-swapping stations in China. The move to establish a factory in Chuzhou city comes as other Chinese EV players are also stepping up their efforts to increase their market share, in a bid to take advantage of rising EV usage in China. Over a quarter of new cars sold in China in January were either pure electric or plug-in hybrids.
