NIO (NYSE: NIO) is gearing up for the establishment of new manufacturing plants dedicated to its two forthcoming sub-brands, which are currently being referred to by their code names: ALPS and Firefly. These sub-brands are reportedly focused on compact hatchbacks, a popular segment in the European market, and both models are anticipated to commence production in 2024.
The manufacturing facilities for these sub-brands have been designated as the F4 plant for the Firefly sub-brand, situated in Chuzhou, Anhui province, and the F3 plant for the ALPS sub-brand, continuing to be located in Hefei. The F4 plant is expected to manufacture vehicles for the Firefly project, producing certain components as well. Initial production for the Firefly sub-brand will be primarily earmarked for export to Europe, scheduled to begin in the third quarter of 2024.
The Chuzhou plant will focus on producing small cars with an approximate price of ($15,000).
NIO’s interest in these sub-brands was initially announced in August 2022, with intentions to tap into the mass-market sector. NIO aims to achieve monthly sales of 50,000 units for these sub-brands.
In order to realize its ambitious goal of becoming one of the world’s top five carmakers by 2030, NIO, under the leadership of CEO William Li Bin, acknowledges the need to sell more than 5 million vehicles annually.
It’s worth noting that the concept of sub-brands is not new, as other major automakers like Lexus, Toyota, and Suzuki have successfully employed this multi-brand strategy to cater to diverse markets.
ALPS, NIO’s sub-brand, will target the RMB 200,000 to 300,000 market range, while Firefly is aimed at the RMB 100,000 to 200,000 market range.
NIO’s current lineup includes models like ES7, ES6, EC6, ET7, ET5, and the older ES8. The company introduced two new models, the EC7 coupe SUV and the new ES8, during NIO Day 2022. Deliveries for these models are set to commence in May and June 2023.
Although further details about the ALPS project and sub-brand remain undisclosed, NIO’s strategic expansion and focus on diversification through sub-brands continue to shape its trajectory in the electric vehicle market.
For the mass-market sub-brands, NIO hopes to sell 50,000 units a month
NIO’s sub-brand, ALPS, will reduce the number of products to improve efficiency and will have half the number of models of the NIO brand
NIO wants to be one of the world’s top five carmakers by 2030.William Li Bin ( CEO of NIO )
To achieve the goal of worlds top carmakers, Nio would have to sell more than 5 million cars a year.
NIO’s sub-brand codenamed ALPS will target the RMB 200,000 to 300,000 market, while the sub-brand codenamed Firefly will target the RMB 100,000 – 200,000 market, the report said.