NIO has announced that it is working on a mass-market brand to rival Volkswagen and Toyota.
As NIO considers its existing brand as a rival to BMW and Audi, it is now venturing into the more affordable end of the market and wants its EVs to cost less than those from Tesla, Reuters reports.
“The relationship between Nio and our new mass-market brand will be like that of Audi-Volkswagen and Lexus-Toyota,” NIO chief executive William Li said in a recent statement. Li added that a “core team” had been assembled to lead the brand.
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“We want to provide better product and service at prices lower than Tesla Inc’s,” he added, while also stating that NIO won’t release a vehicle to compete with the Wuling Hong Guang MINI EV built through the GM and SAIC joint venture.
The Chinese car manufacturer currently builds three SUVs in the city of Hefei and in its most recent financial results, reported a 659.3 million yuan ($101.8 million) loss in the second quarter, a significant 45.4 per cent less than a year earlier. NIO also reported deliveries of 21,879 vehicles between April and June, more than double compared to the 10,331 units sold in the same period last year.
NIO’s range of models will grow next year with the market arrival of the ET7 sedan, while two other models will hit the market in 2022.
Li did not specify when the company plans to launch its new mass-market brand, nor did he say what form its first model will take.
