The new sub brand of NIO, which has received much attention from the outside world, has made the latest progress.
On March 5th, Li Bin, founder, chairman, and CEO of NIO, revealed during a financial report conference call that a new brand targeting the mass market will be launched in the second quarter, with the first product to be launched in the third quarter and large-scale delivery in the fourth quarter.
At the same time, the brand's first model test car was captured during testing in Heihe City, Heilongjiang Province, northern China. Spy photos show that the disguised vehicle has a Chinese slogan on the rear window that reads "Better than Tesla Model Y", indicating NIO's confidence in this new brand.
Li Bin stated that this model, which is completely in line with Model Y, will support battery swapping, have a larger screen size than Model Y, and eliminate the roof radar to improve the acceptance of the mass market. In addition, adopting a pure visual solution helps to reduce costs, ultimately resulting in the new car being priced lower than the Model Y.
In addition to benchmarking on the first model, the sales outlets of NIO's new brand will also follow Tesla's efficiency oriented sales model. At present, NIO has started to use its current training system to train new brand sales personnel in advance, aiming to quickly build a sales system after going public and improve sales efficiency.
It is understood that the monthly production of the first model of NIO's new brand is expected to be 10000 units, with a manufacturing cost 10% lower than Model Y, providing the company with greater flexibility in product pricing. The brand also plans to launch a second SUV model designed for large families, as well as more competitive models tailored to the needs of different families.
Li Bin pointed out during a conference call that the NIO brand will not launch a cheaper model than the ET5 sedan (with a minimum price of 298000 yuan), but will meet the market's demand for more price sensitive parts through a new brand. In the short term, the new brand will focus on pursuing quantity, initially not targeting gross profit margin, but more on expanding market share.
To achieve this goal, NIO's second brand will establish an independent sales and after-sales service network, and some facilities will be shared with NIO's main brand.
In addition, NIO plans to start building a fourth generation battery swapping station compatible with new and other automotive brands in April this year, and has reached agreements with multiple companies to share public energy replenishment facilities.
Entering 2024, NIO is beginning to face more pressure in sales and capital markets. US stock data shows that NIO's stock price on the New York Stock Exchange has fallen by over 35% so far this year. NIO urgently needs a new brand of high-volume models to boost sales and confidence in the capital market.