Nio Unveils Affordable Firefly Brand

GUANGZHOU, China (Reuters) – Nio (NYSE:NIO) has launched a new lower-cost brand called Firefly, aimed at competing with Mercedes' Smart and BMW's Mini in the electric vehicle market. This announcement was made by CEO William Li at an annual event in Guangzhou, with pre-sales starting immediately at a price of 148,800 yuan (approximately $20,394).

Li showcased three Firefly models in colors such as lavender, lemon, and beige, highlighting features like a tight 4.7-meter turning radius and autonomous parking technology. Customers can place their orders via the Firefly app, with an official launch planned for April.

> "We are building the Firefly car to be smarter than Mini and be more Mini than smart cars," Li stated.

In China, BMW's fully electric Mini and Mercedes' Smart #1 are priced starting at 148,800 yuan and 154,900 yuan, respectively. Firefly will also face competition from domestic brands like BYD’s Seal and Xpeng (NYSE:XPEV)'s Mona.

Nio, a major player in the Chinese EV market, is countering increasing price competition by introducing less expensive models, having launched another called Onvo earlier this year. Although initially intended to bolster its European market share by challenging brands like Renault, Fiat, Peugeot, and BMW's Mini, Nio's plans may be hindered by a recently imposed 20% tariff on exports to Europe.

Li did not provide specific details on the locations where Firefly will be sold during the event. Nio is aiming to double its sales by 2025 and reach break-even by 2026, although recent reports indicate it is currently facing delays in achieving sales growth targets.

Reuters indicated Nio plans to introduce its first extended-range hybrid model under the Firefly brand in 2026, targeting only overseas markets.

($1 = 7.2961 Chinese yuan renminbi)