Nio Plans To Make Cheaper EVs Under Sub-Brand At NeoPark, Production To Begin In 2 Years: Report

Nio Inc NIO plans to build a manufacturing plant at NeoPark for its anticipated sub-brand, CnEVPost reported on Tuesday, citing local authorities.

What Happened: The Shanghai-based Nio plans to begin production of the sub-brand electric vehicle models in 2024.

The Hefei Economic Development Zone and Nio have signed a cooperation agreement for NeoPark Phase II expansion, the report noted, citing an article published by the city government.

Nio’s first batch of electric vehicles, under the sub-brand, are already in key development stages, according to CnEVPost, which added that the new models would compete with Tesla Inc TSLA and Volkswagen Inc VWAGY.

See Also: Nio Confirms Plans To Enter Mass-Market EV Segment Under A Sub-Brand

Why It Matters: Nio had in February said it would enter the mass market through a new brand and that a core team of the new brand had been assembled.

The EV maker has reportedly been planning a more affordable sub-brand around the $31,300 price band. The yet-to-be-named sub-brand is expected to operate independently and would have a positioning below Nio.

Nio's current line of vehicles is focused at the high-end of the market and priced no lesser than RMB 358,000 (USD $56,000) unless customers choose to opt for a battery-as-a-service subscription and pay an additional monthly fee.

Benzinga’s Take: The lure of mass-market is not new for automakers as it helps bring scale and Nio has in the past few years tried different approaches to making such a foray through joint ventures and investments with GAC and Changan.

Photo: Courtesy of Nio

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsRetail SalesTechMediaChinaelectric vehiclesEVs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!