China’s Nio to build factory for low-cost electric vehicles: sources

SHANGHAI, Feb 21 (Reuters) – Chinese electric vehicle (EV) maker Nio Inc ( 9866.HK ) plans to build a factory in Chuzhou city in eastern Anhui province to produce budget electric vehicles with a new brand, three people with knowledge said. of the matter

Nio has been planning to launch more affordable EV products under new brands after 2024 in projects codenamed “Alps” and “Firefly,” said the people, who declined to be named because the discussions are private.

Neither Nio nor Chuzhou’s local government immediately responded to requests for comment.

Chinese media outlet Cailianshe first reported the plan.

Nio’s flagship brand, Nio, is positioned for the premium car segment to compete with brands such as BMW, Audi and Mercedes-Benz in China and Europe.

Chinese electric vehicle players, most of which are still loss-making, are stepping up efforts to increase their market shares in the world’s largest auto market as the penetration rate of electric vehicles rises rapidly.

More than a quarter of new cars sold in January in China were pure electrics or plug-in hybrids, according to the China Passenger Car Association.

Reporting by Zhang Yan, Zhuzhu Cui and Brenda Goh; Editing by Christopher Cushing and Sonali Paul

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