SHANGHAI — Chinese electric vehicle maker Nio plans to build a factory to produce rebranded budget electric vehicles for export to Europe starting next year, three people with knowledge of the matter said.
The plan to expand the company’s lineup and expand overseas sales comes as sales of electric vehicles weaken sharply in China, the world’s largest auto market, following the end of state subsidies for purchases of electric vehicles.
Nio has been planning to launch more affordable EV products under new brands after 2024 as part of projects called “Firefly” and “Alps,” according to the people, who declined to be named because the discussions are private.
The new factory will be built in the city of Chuzhou in east China’s Anhui province, they said, adding that the plant will make cars, developed under the “Firefly” project, that Nio wants to export in Europe, where customers prefer small-sized vehicles.
Nio already has two car assembly plants in Anhui’s provincial capital, Hefei City.
The automaker’s prices in Europe range from 50,000 euros ($53,265) to 91,000 euros, depending on the vehicle range and whether customers buy or lease the battery.
The company did not immediately respond to a request for comment. An official at the Chuzhou Economic and Technological Development Zone, where the Nio plant will be located, declined to comment.
Chinese media outlet Cailianshe first reported the development.
Chinese electric vehicle players, most of whom are still losing money, are stepping up efforts to increase their market share as electric vehicle use rises rapidly in China, where more than a quarter of new cars sold in January were fully electric or plug-in hybrids.
While Tesla relies on two models for most of its sales in China, a strategy that has helped keep costs under control, many Chinese brands offer more models to appeal to a wider consumer base.
Nio offers six models and plans to launch five more this year under the Nio brand. The Nio brand is positioned for the premium segment to compete with BMW, Mercedes and Audi.
Nio President William Li also said on Tuesday that the company will accelerate the expansion of its network of battery exchange stations in China.
