Nio Inc (NYSE:NIO) plans to build a manufacturing plant at NeoPark for its anticipated sub-brand, CnEVPost reported on Tuesday, citing local authorities.
What Happened: The Shanghai-based Nio plans to begin production of the sub-brand electric vehicle models in 2024.
The Hefei Economic Development Zone and Nio have signed a cooperation agreement for NeoPark Phase II expansion, the report noted, citing an article published by the city government.
Nio’s first batch of electric vehicles, under the sub-brand, are already in key development stages, according to CnEVPost, which added that the new models would compete with Tesla Inc (NASDAQ:TSLA) and Volkswagen Inc (OTC:VWAGY).
See Also: Nio Confirms Plans To Enter Mass-Market EV Segment Under A Sub-Brand
Why It Matters: Nio had in February said it would enter the mass market through a new brand and that a core team of the new brand had been assembled.
The EV maker has reportedly been planning a more affordable sub-brand around the $31,300 price band. The yet-to-be-named sub-brand is expected to operate independently and would have a positioning below Nio.
Nio's current line of vehicles is focused at the high-end of the market and priced no lesser than RMB 358,000 (USD $56,000) unless customers choose to opt for a battery-as-a-service subscription and pay an additional monthly fee.
Benzinga’s Take: The lure of mass-market is not new for automakers as it helps bring scale and Nio has in the past few years tried different approaches to making such a foray through joint ventures and investments with GAC and Changan.
Photo: Courtesy of Nio
