NIO Inc. (NYSE: NIO) may soon have a model catering to the mid- to-low end market, if reports are to be believed.
What Happened: Nio has commenced development of a new vehicle model that will likely be positioned below its existing SUV models and its upcoming ET7 sedan, several Chinese media outlets reported, citing unnamed sources.
The price of the new model could be 276,000 yuan ($42,560) if it is purchased under the battery-as-a-service scheme.
The price point could reportedly be even lower with a lithium ion phosphate battery.
Nio is also reportedly working on an upgraded 70 kilowatt-hour battery pack that uses lithium iron phosphate batteries. The new cheaper batteries would be supplied by Nio’s existing battery supplier CATL, and these batteries are currently undergoing B-sample testing, 36Kr reported.
Related Link: Nio To Announce Norway Expansion Plan On May 6 – What You Need to Know
Why It’s Important: The foray into the low-to-mid sized market could help Nio broaden its customer base and kickstart further volume growth in the Chinese EV market.
Rival EV makers such as Tesla, Inc. (NASDAQ: TSLA) and XPeng Inc. (NYSE: XPEV) have started using lithium iron phosphate batteries in a bid to lower vehicle costs.
Related Link: Is ARK Invest’s Cathie Wood Interested In Nio?
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