NIO is ready to fight for its place among Chinese EVs, as the market is set for further upheaval in the coming months and it anticipates a “strong” product cycle from fiscal 2025, founder, chairman, and chief executive William Li said on Dec. 22.
“We’ve started to monetize the investment in developing new technologies and vehicle lineups we made since June. I believe we will benefit from a strong, innovation-based new product cycle in the coming years,” Li told reporters in the southern Chinese city of Guangzhou, where Saturday saw its annual NIO Day launch event (our translation).
The comments came as NIO revealed details at the same event of its highest and lowest-priced car models, pushing the EV maker into segments it never competed in before. The ET9 executive sedan is priced from RMB 788,000 ($107,956) and scheduled for delivery in March, while the firefly mini EV went on pre-sale at RMB 148,800 ($20,386), and is set for launch in April.
NIO said that both vehicles are well-tailored for styling and class-leading features, focusing on two niche market segments of business elites and middle-class urban millennials, respectively, which it hopes to expand its customer base both in China and around the globe.
New models
Featuring the world’s first five-nanometer chip for autonomous driving, the flagship ET9 battery-electric sedan is the epitome of NIO’s decade-long efforts in automotive and technological innovations, described Li. The company has spent a total of RMB 53 billion on research and development after a decade of operation.
NIO said the ET9 is capable of piloting itself through some of the most challenging conditions, such as in heavy rain and fog, thanks to the integration of its Shenji system on chip (SoC) and three lidar sensors, which provide a full 360-degree view. The 5nm processor, designed in-house by NIO, enables vehicle cameras to capture images with higher quality resolution in minimally lit environments, where rivals’ systems are more likely to malfunction, according to Li’s presentation.
The four-door executive flagship also comes with a steer-by-wire system and rear-wheel steering, which together ensure stable vehicle control even in the case of a blowout at a speed of 170 kilometers per hour (105.6 mph), Li said. NIO also took former Volkswagen CEO Herbert Diess on a test drive to show off its adjustable suspension settings, as a multi-tier tower of Champagne glasses remained in place on the front body panel when the car navigated through speed bumps in a video.
READ MORE: NIO unveils flagship executive sedan, 5nm self-driving chip in super-premium battle
NIO also debuted its unique-looking, solid-built firefly EV with a pledge to build the finest small car for international buyers. Designed to meet the latest Euro-NCAP five-star rating safety requirements, the firefly reflects a mindset that few automakers have adopted in making small vehicles, NIO said.
The company said it boosted the content of high-strength steel and aluminum alloy to 83.4% of the frame in the tiny EV, comparable to that of a typical luxury car. The firefly also has large-scale dual-impact beams that nearly span the entire front of the car and its front side doors, and nine airbags for passengers safe, more than other similar offerings on the market, according to Li.
In particular, NIO’s answer to BMW’s Minis and Mercedes-Benz’s Smart-branded cars comes with a unique appearance, characterized by the signature “trio” headlamps and taillights, which has sparked debate on Chinese social media over the past weekend. Speaking to a car influencer on Sunday on the microblogging platform Weibo, Li said the firefly has a “memorable” design compared with existing offerings.
READ MORE: NIO’s upcoming electric vehicle to challenge Mini, Smart: CEO
“An upheaval”
Although the two models will probably not become a bright spot in terms of sales, NIO has given a promising outlook of doubling its deliveries in 2025 and finally breaking even a year later, despite being two years behind the schedule. Vehicle deliveries are expected to reach around 230,000 units this year.
Li has said he would be “extremely happy” if sales of the ET9 surpassed more than 1,000 units per month while expecting monthly deliveries of “several thousand units” next year for the firefly. NIO counts on the potential contribution from its family-oriented, mainstream sub-brand Onvo, with two new models set to hit the market next year: a six- to seven-seater SUV and a mid-size crossover.
There will be a diversified lineup of vehicles under the three brands for NIO, including fives premium sports utility vehicles and coupes, three luxury sedans, three affordable crossovers, a premium shooting brake, and a small EV.
Li told TechNode the company has indeed “learned many lessons” in product development for the past three years and is now well-prepared with the new models, while improving the operational efficiency in a consistent manner. President Qin Lihong said it aims to achieve “leapfrog development” for the next year when China’s EV market is set for “an upheaval” as profound changes could take place.
The situation remains uncertain but NIO is taking different approaches. The company is developing assisted driving software together with auto tech firm Horizon Robotics, rather than doing it all by itself, with its firefly vehicles to be powered by affordable processors from Volkswagen’s Chinese partner.
It is also looking for partners for sales and services of the three brands in Europe, a pivot from its direct sales model, Bloomberg reported. Meanwhile, Li confirmed NIO is open to working with CATL to make a battery-swapping network for the firefly.
Li’s optimistic tone stands out in turbulent times for automakers in China, as the industry has been facing slowing demand for battery EVs and rising competition from bigger rivals. BYD recently requested its suppliers to cut 10% of their prices in preparation for a worsening situation next year, and Tesla is expected to launch its refreshed Model Y crossovers. Experts predict another price war in the coming weeks, which could force an expanding list of smaller players out of business.
READ MORE: China intensifies focus on EV battery swapping as CATL joins the battle with NIO
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