He said that the Firefly and Alps brands will produce cars for families, with the former brand’s models being smaller. The president of the Chinese company did not provide details about the prices, Reuters wrote.

Chinese electric car manufacturers are expanding in the European market, while the wave of interest in electric cars is waning in China. Chinese automakers are trying to take advantage of price advantages over Western competitors, who are slower to introduce new technology. The EU is evaluating whether the import of Chinese cars does not violate economic competition.

Nio currently competes on the Chinese market with electric cars from premium automakers such as BMW and Mercedes-Benz with a price above 298,000 yuan (over 940,000 CZK). Due to the price war started by the American electric car manufacturer Tesla, losses are increasing for Chinese automakers.

Nio plans to reduce the number of jobs by ten percent due to fierce competition. According to informed sources, 20 to 30 percent of them will eventually decrease.

The company is also considering the separation of some divisions, for example battery production. With a view to reducing costs, it forms partnerships to finance joint ventures, including battery replacement. In November, Nio partnered with Geely and Changan Automobile to develop a new battery and chassis.