Lihong Qin, the president of Chinese electric vehicle (EV) maker, Nio (NYSE:NIO) announced Friday that the company plans to launch its cheaper Firefly brand in Europe in 2025.
During an online press conference, Qin mentioned that both Firefly and Alps brands will cater to family-oriented car models, with Firefly focusing on smaller vehicle variants.
However, specific pricing details for the two brands were not disclosed at the conference.
Nio currently competes against premium EVs from brands like BMW and Mercedes-Benz in China, and has positioned its offerings above the 298,000 yuan ($42,000) price mark.
However the EV maker has incurred heavy losses due to a price war started by Tesla (NASDAQ:TSLA).
To address these challenges, the company has implemented cost-cutting measures, including a 10% workforce reduction. Nio has also considered spin-offs of segments like its battery manufacturing division, and forging partnerships to garner support for initiatives like battery swapping, all aimed at cost reduction.
Back in November, Nio established a partnership with Geely and state-owned Changan Automobile. These alliances aim to jointly develop a new battery pack and chassis architecture. President Lihong Qin hopes that these collaborations will serve as a blueprint for future partnerships.
According to Qin, Nio has recently entered into a third partnership; however, specific details are yet to be disclosed.
Shares of NIO are up 1.50% in mid-day trading on Friday.