China’s Nio introduces Firefly model to tackle BMW’s Mini

GUANGZHOU, China (Reuters) – Nio (NYSE:NIO) unveiled a lower-cost model named Firefly on Saturday that it touted as a rival to Mercedes’ Sensible and BMW (ETR:BMWG)’s Mini within the Chinese language electrical car maker’s newest bid to broaden its buyer base and increase gross sales.

CEO William Li introduced the brand new model at an annual firm occasion in Guangzhou and mentioned pre-sales would begin instantly with costs beginning at 148,800 yuan ($20,394).

He displayed three Firefly automobiles in lavender, lemon and beige and mentioned the automobile supplied a good 4.7 metre turning radius and autonomous parking know-how.

Clients can place orders on the Firefly app, which mentioned the automobiles can be formally launched in April.

“We’re constructing the Firefly automobile to be smarter than Mini and be extra Mini than sensible automobiles,” Li mentioned.

BMW’s pure electrical Mini additionally sells from 148,800 yuan in China whereas Mercedes’ Sensible #1 automobile is priced from 154,900 yuan.

Home manufacturers Firefly will compete towards embrace BYD’s Seal and Xpeng (NYSE:XPEV)’s Mona.

Nio, one in every of China’s largest EV gamers by gross sales, has been combating rising value competitors in China by launching cheaper fashions this yr, having earlier in Might unveiled one other it known as “Onvo”.

Nio, which has restricted European gross sales numbering within the lots of of automobiles per yr, had initially deliberate the Firefly model to spice up its share in Europe, its executives mentioned beforehand.

It could have taken on Renault (EPA:RENA), Stellantis (NYSE:STLA)’ Fiat (BIT:STLAM) and Peugeot (OTC:PUGOY) and BMW’s Mini in a European small automobile phase with annual demand for 4 million automobiles.

However the European Fee in October imposed a further tariff of greater than 20% on Nio’s automobiles together with Firefly EVs exported from China to the area for the following 5 years. Analysts mentioned this may largely undermine the model’s value competitiveness.

Li didn’t element plans for the place Firefly can be bought in the course of the occasion.

Nio has targets to double its gross sales in 2025 and obtain break-even in 2026 however mentioned this month its gross sales development was two years not on time.

Reuters reported in November that Nio was planning to launch its first prolonged vary hybrid mannequin underneath the Firefly model in 2026 for gross sales in abroad markets solely.

($1 = 7.2961 Chinese language yuan renminbi)

($1 = 7.2961 Chinese language yuan renminbi)