Nio will create a second, more affordable electric car brand to compete with Tesla

Nio is positioned in the Chinese electric car market as a high-end premium brandAlthough it is a recognition of a job well done, it is a problem for the manufacturer. Your prices do not allow you to achieve large sales volumes. To solve this problem, Nio proposes a strategy that turns it into a business opportunity. will create a second most affordable electric car brand, although this does not mean that it will be very cheap. It will be at the level of Tesla, which it considers its main competitor and will have a role similar to that of Volkswagen in relation to Audi.

Usually, when talking about Chinese manufacturers, Nio is considered on a par with the rest of the start-ups that come from the Asian Giant, Xpeng, Li Auto, Leap, Neta, Weltmeister, etc. However, this comparison is not entirely fair. Nio has managed to forge a premium brand image, above the rest that points to a medium or medium high level. The price of a Nio is currently almost double than that of, say, an Xpeng.

Nio is a real bestseller in its market where national brands have always had good press, as a high-end premium brand. However, this can also lead to some problems as it does not allow you to large sales volumes. To turn it into an opportunity, Nio will create a second most affordable electric car brand.

The solution that Nio has chosen is the usual one in these cases, both for Chinese brands and for those from the rest of the world. The creation of a second brand makes sense in a market where the territories are very different and highly segmented. As the municipality of Hefei is one of the main financiers of Nio, this new brand will have its production center inside the NeoPark where the brand is expanding its electric car factory to double its annual production to 240,000 units. The announcement of the creation of this new brand comes precisely from the municipal authorities, and not from the manufacturer.

The name of the new brand is yet to be decided. For now reply to internal code name ALPS which is not definitive. The production of its first models should start in 2024 focused on fighting in the mid-high-end car market. The manufacturer compares the positioning of its two brands with Volkswagen and Audi within the VAG Group. The new brand would be Volkswagen, while the current one would be Audi.

However, despite this parallel, Nio’s intention is compete with this new brand with Teslawhich implies that Nio, the current brand, is positioned above the Californian manufacturer’s electric cars, towards a more premium segment in which it would compete with luxury cars from manufacturers such as Mercedes-Benz.

Under this new brand, Nio does not plan to go beyond the ET5 segment. ALPS will search above all the C and D segment market, the latter in its lower part, with models of various formats, among which you can find sedans and SUVs. As in the case of the parent brand, these vehicles will arrive in Europe from 2025.

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