Nio will develop the extended-range hybrid under sub-brand codenamed Firefly, stemming from suggestions by major investor Abu Dhabi investment firm CYVN Holdings, Reuters reported.
Nio (NYSE: NIO) denied a report last week that it was planning to launch a hybrid vehicle, but a latest report makes things interesting.
The Chinese electric vehicle (EV) maker plans to launch its first hybrid model in 2026 and will sell it only in overseas markets such as the Middle East, North Africa and Europe, Reuters said in a report today, citing two people familiar with the matter.
Nio is building the hybrid vehicle in response to challenges faced by Chinese companies selling EVs in foreign markets that have put up trade barriers and are slower to install charging facilities, the report said.
The company will develop the extended-range hybrid under a sub-brand codenamed Firefly, stemming from suggestions by its main investor, Abu Dhabi-based investment firm CYVN Holdings, that the move could boost sales in the Middle East market, where infrastructure is not yet ready for large-scale adoption of EVs, according to Reuters.
The car is scheduled to be launched in late 2026 and deliveries will begin in 2027, one of the people familiar with the matter said.
The model will not be sold in China and Nio will continue to offer only battery swap-enabled EVs, they added.
Nio declined to comment on the hybrid model plan. The company said the Firefly brand will use pure EV technology, but did not elaborate further, the Reuters report noted.
On November 1, local media outlet Yicai, citing multiple independent sources, reported that the Firefly would use an extended-range hybrid powertrain and that the product was expected to be launched in 2026.
But then Nio co-founder and president Qin Lihong denied the report in a reply to local media outlet Cailian, saying that the Firefly brand will be launched on Nio Day 2024, and will continue to adopt the chargeable, swappable, and upgradable pure-electric technology route.
Nio later repeated Qin's statement on Weibo as well.
Nio Day 2024 will be held on December 21 at Guangzhou's landmark Haixinsha. Prior to the event, Nio will celebrate its 10th anniversary on November 25.
The European Union's anti-subsidy investigation into imports of pure electric vehicles (BEVs) from China ended on October 29, with additional tariffs for five years taking effect on October 30.
Nio, Xpeng (NYSE: XPEV), and Leapmotor were among the EV makers that cooperated with the investigation but weren't sampled, and they face additional tariffs of 20.7 percent. These tariffs would be additional to the original 10 percent.
While China-made EVs are subject to the extra tariffs, hybrids remain exempt, encouraging plans to export hybrids to Europe, the Reuters report today noted.
The additional EU tariffs have largely undermined Firefly's competitiveness, the Reuters report said.
Nio management had previously voiced its opposition to the EU tariffs, but argued that the Firefly model remains competitive with the additional duties.
"The EU originally imposed a 10 percent tariff on Chinese EVs, and now an additional 21 percent has been added, raising it to 31 percent, which is definitely not right," Li said at a user communication event on June 19 in Tianjin.
Europe is a global role model for clean energy and sustainability, but now imposing additional tariffs on Chinese EVs is a conflict of logic, he said at the time.
Nio's Firefly models will still be competitive in Europe even with extra tariffs, says William Li
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