After launching in China and Europe, Firefly cars may also be available in Southeast Asia and Latin America, but will not enter the US market for now.
Nio's (NYSE: NIO) third brand, Firefly, will focus on the Chinese and European markets, with the first European launch not far behind.
Firefly's first model will be launched in China in the first half of 2025, with a launch in Europe likely a quarter later, Daniel Jin, president of the Nio sub-brand, said in an interview with local media outlet 36kr, according to the text of the interview released today.
Nio initially positioned Firefly as a global model, hoping for a simultaneous release in global markets, according to Jin.
But the company ultimately chose to have the first model debut in China, Jin said, adding that it would be best from a quality control perspective.
Nio will officially launch the Firefly brand at the Nio Day 2024 event on December 21, when the sub-brand's first model -- with the same name as the brand -- will also be unveiled, the company previously said.
Earlier today, Nio officially started warming up for Firefly, with the brand logo being unveiled and the mobile app and website becoming available.
From day one, Firefly is positioned globally with a focus on Europe and China, and then a balance of other markets, Jin said in the interview, adding that a small car is the most universal globally.
In the short term, China will still contribute major sales, but there is a lot of potential for growth in overseas markets, he said
Prior to the additional tariffs in Europe, the Firefly model will be priced competitively in Europe, Jin said.
After the additional tariffs of more than 20 percent, the model's competitiveness will be affected a bit, but overall, it remains competitive in Europe, according to Jin.
The European Union's anti-subsidy investigation into battery electric vehicle (BEV) imports from China ended on October 29, and the five-year additional tariffs came into effect the next day.
Different carmakers face different tariff rates, ranging from 7.8 percent for Tesla China to 35.3 percent for SAIC Motor. Nio and some of its other local counterparts face tariffs of 20.7 percent, which are extra on top of the original 10 percent.
In China, Firefly is positioned as a smart, high-end boutique small car. In Europe, where small cars are mainstream and the market space is 4 million units per year, demand is very high, Jin said.
There are some traditional small fuel cars priced slightly more than 10,000 euros in Europe, but they are not the potential rivals that Firefly is targeting, according to Jin.
The recently launched Renault 5 and the future Volkswagen ID.2 could be the Firefly's main competitors, he said.
Firefly will have different chassis tuning styles for Chinese and European consumers. A lot of effort has been put into tuning the chassis of Firefly, and that work is being done in the UK, according to Jin.
Asked if the Firefly brand has any plans to build a factory overseas, Jin said it would only be considered if there are enough sales.
The company is still pre-researching this possibility and as of now there is no conclusion, he said.
After the launch in Europe, the company will adapt the Firefly model for launch in other markets, Jin said.
The company does not rule out the possibility of launching the Firefly model in Southeast Asia and Latin America, but it will not enter the US market for the time being, he said.
The Firefly model will also support battery swap, but won't share battery swap stations with the Nio and Onvo brands due to smaller batteries, Jin said, repeating earlier statements by Nio founder, chairman, and CEO William Li.
The sub-brand will have its own separate battery swap stations, but will not build that infrastructure in advance, and instead deploy it based on user demand, he said.
Overseas, the company will work with partners to deploy battery swap stations for Firefly, according to Jin.
Firefly's battery swap stations are the size of a shipping container, which is flexible and compact, and can leverage the Nio brand's capabilities in the area, he said.
For small cars used for commuting in cities, the anxiety of users to replenish energy will not be great, and they don't need to go to the highway very often, according to Jin.
Meet Daniel Jin: Head of Nio Firefly, an auto industry veteran
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