Nio to Launch Hybrid Model in 2026

SHANGHAI (Reuters) – Chinese electric vehicle maker Nio (NYSE:NIO) is planning to launch its first hybrid model in 2026, exclusively for overseas markets, including the Middle East, North Africa, and Europe, according to sources.

To date, Nio has only manufactured pure electric vehicles. The development of the hybrid vehicle, branded as Firefly, is a response to trade barriers and slow installation of charging facilities impacting Chinese EV sales abroad.

Following suggestions from Nio's main investor, CYVN Holdings, the hybrid model aims to address market needs in regions where EV infrastructure is lacking, particularly the Middle East. The vehicle is expected to launch in late 2026, with deliveries starting in 2027. Notably, it will not be sold in China, where Nio plans to continue offering only battery-swappable EVs.

Nio declined to comment on the hybrid plans but indicated that the Firefly brand will utilize pure EV technology without further details.

Chinese media outlet Yicai reported on Nio's hybrid model plans last Friday. The first model under the Firefly brand will be unveiled at Nio's annual event on December 21. Nio aims to serve the European mass market with designs catering to the preference for nimble small-sized cars.

The European Union has recently imposed tariffs exceeding 20% on Nio's EVs, adding to an existing 10% import duty, thus impacting Firefly's competitiveness. However, hybrids are exempt from these tariffs, which creates an opportunity for exporting hybrid vehicles to Europe.

In 2023, Nio received $2.2 billion in funding from CYVN Holdings, alleviating liquidity pressures as the automaker focused on R&D efforts despite challenges with profitability. Moreover, Nio agreed in February 2024 to license its EV technologies to CYVN.