NIO will launch a new low-cost electric car division

While Western manufacturers have focused on the race to achieve the highest margin per unit sold, attacking the premium segments and SUVs, in China, they are clear that this is a short-term strategy aimed at saving the bills due to the lack of components. . But once the supply crunch is over, the demand for electric cars will come, and manufacturers like NIO are preparing to reap the forgotten fruit of the Europeans.

In this way, according to the Chinese media, NIO is deploying a comprehensive strategy where it will offer high-end products, hand in hand with its current NIO brand, a mid-range offer under the name of ALPS, but they will also launch a third brand that will be placed in the segment of economical electric cars.

At the moment there is no news about what name this will bear, but it has been indicated that the objective is to launch electric cars that take advantage of all the experience and technology of the parent company, but with a typical client with a lower budget, at the same time that they are New R&D teams are underway to create customized products for each type of vehicle and segment.

The idea would be to put models on the market with prices that would start at 100,000 yuan, which in exchange is just under 15,000 euros.

A strategy that seeks to copy the start-up at the time by the Japanese giant Toyota, with its Lexus and Suzuki divisions, but focused exclusively on electric cars.

The growth expected for the coming years for NIO is more than considerable, and as an example the more than 16,000 employees it currently has, with an average of 100 new hires joining the company every week.

NIO

Some workers have two great challenges before them. On the one hand, there is an improvement in the quality of products such as the new ET7, which has received much criticism due to its construction and operating flaws. But they will also have to manage the international expansion of the Chinese brand, which is already working on its implementation in markets such as Europe, where its models will arrive this year, and where the low-cost brand’s proposals are also expected to land.

Some movements that seek to continue or reinforce the growth of the company, despite the difficulties with the confinements due to Covid in China, have managed to close a month of July growing 26.7% compared to last year, and 22% compared to the accumulated of the first seven months of the financial year.

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