NIO surges over 10% in Hong Kong on report it plans to launch third EV brand

 

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Chinese electric vehicle maker NIO surged as much as 10.6% in Hong Kong on Monday on media report that it’s planning to launch a third electric vehicle brand to cover low- to mid-range market with prices under 200,000 yuan, reported by Chinese tech news outlet 36kr on Monday.

This new brand, in addition to the NIO brand and a sub-brand codenamed ALPS, will be operated independently with an independent leader and R&D, and the brank is currently recruiting a core team, the report said. The prices of the new brand will be in the range of 100,000 ($14,820) – 200,000 yuan, the report said.

Within NIO, the three brands are seen as a stepped matrix similar to Toyota’s Lexus, Toyota and Suzuki, the report said.

On July 30 last year, 36kr had reported that Ai Tiecheng, former general manager of WeWork Greater China, had joined NIO to head the mass-market-oriented sub-brand, codenamed ALPS.

ALPS is planning to target the 150,000-300,000 yuan market in the initial phase, according to Monday’s report. However, NIO’s founder and CEO William Li had said in the first-quarter earnings conference call that the sub-brand’s pricing range will be between 200,000 yuan and 300,000 yuan and mass production will start by 2024, the report noted.