Chinese electric vehicle maker Nio Inc (NYSE:NIO) is reportedly set to introduce a new model aimed at the mass market by the end of this month, along with a smaller EV to be marketed in Europe next year for under $30,000.
Nio has established the sub-brand Onvo to roll out a new EV targeting Tesla Inc's (NASDAQ:TSLA) Model Y, as confirmed by CEO William Li, reported Reuters.
During a France-China business forum in Paris, Nicolas Vincelot, general manager for France, revealed plans for the launch of new car brands tailored for the European market, mentioned the report.
The new website for the Onvo brand debuted in China, teasing details about the upcoming model, the L60.
Vincelot anticipated further information about the brand, previously known as "Alps," to emerge by the month's end.
Onvo and a second sub-brand, code-named Firefly, are both directed at European sales, with Onvo L60s projected to launch globally by year-end and Firefly models slated for a 2025 reveal.
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These brands will integrate with Nio's rapid battery swapping stations, enabling quick exchanges of empty batteries for fully charged ones, as per the report.
The Firefly prototype, showcased by Chinese auto media, portrays a compact four-door hatchback.
Rival Xpeng Inc (NYSE:XPEV) also plans a new mass-market brand, Mona, featuring self-driving capabilities on cars priced below $21,000.
Vincelot noted Nio's shift away from its original subscription model toward broader distribution, including online sales and showroom presence in major cities.
In Europe, Nio has commenced sales in Norway, Denmark, Sweden, Germany, and the Netherlands.
The company has been trimming costs amid a dip in EV sales and heightened pricing competition in China, having announced a 10% staff reduction last year and reportedly exploring the spinoff of its battery manufacturing division.
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Nio stock has lost more than 31% in the last 12 months. Investors can gain exposure to the stock via KraneShares MSCI China Clean Technology Index ETF (NYSE:KGRN) and Invesco Golden Dragon China ETF (NASDAQ:PGJ).
Price Action: NIO shares closed higher by 2.15% at $5.69 on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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