With a decade of experience in vehicle manufacturing, NIO's strategy of multi-brand and multi-segment operation is becoming increasingly distinctAccording to CEO Li Bin, “NIO can no longer be referred to as a new power in the automotive industryIt’s akin to a person who, having reached a certain age, still claims to be a child; that stance is simply inappropriate.”

During the recent NIO Day 2024 event, the company showcased the extremities of its product line: the luxurious flagship ET9 priced at 788,000 yuan and the streamlined, compact vehicle, the Firefly, costing a more accessible 148,800 yuanThe stark price difference of over 600,000 yuan between these two models presented an image of contradiction for NIOHowever, it marked the official unveiling of the NIO brand targeting the high-end segment, the Liyou brand catering to family-oriented consumers, and the Firefly brand focusing on premium compact cars.

NIO has often stated its intention to compete directly with prestigious automotive brands known as BBA (BMW, Benz, Audi) and aims to reshape the high-end market landscape to reflect a new grouping termed NBA (NIO, BYD, and others). After years of battling within the 34C and 56E market segments, NIO is now boldly venturing into the premium executive and compact car sectors

The ET9's price point aligns closely with that of the international 78S when adjusted for exchange rates, while the Firefly's pre-sale price is directly competing with recently adjusted mini vehicles in the overseas compact car market.

However, the intensifying competition in the new energy vehicle sector this year presents an escalating challenge, characterized by increasing homogenization among vehicle offeringsBattery manufacturers, too, are eager to stake their claim in this marketA notable example is CATL, which recently unveiled its innovative “chocolate battery-swapping technology” and announced partnerships with 31 companies, securing orders for over 100,000 batteriesIn this rapidly evolving landscape, the efficacy and sustainability of NIO’s long-established battery-swapping network could determine its ability to maintain foothold in the high-end market without resorting to aggressive price-cutting strategies.

Li Bin views the automobile industry as one characterized by diversity and abundance, positing that no single company can command more than 15% market share, while attaining even a 10% stake on a global scale is a significant accomplishment

Therefore, NIO's mission focuses on its intrinsic growth rather than merely striving for a broader market shareBy 2035, he anticipates that at least five of the ten largest automotive companies worldwide will be Chinese and emphasizes the necessity for NIO to work diligently to remain a contender in this rapidly expanding sector.

The ET9, starting at a price of 788,000 yuan, indicates a determined push by NIO into the high-end sector of the domestic electric vehicle marketThe event of NIO Day 2024, coinciding with NIO’s tenth birthday, was infused with sentiment and transformed into a lively gathering featuring over 20,000 attendeesNIO’s co-founder and president, Qin Lihong, described this congregation as an atmosphere that can't simply be measured by statistics, stating that it represents the company's biggest asset.

During this pivotal occasion, NIO positioned itself to challenge the established luxury market dominated by BBA directly

Last year, NIO showcased a captivating image at NIO Day illustrating the ET9 gliding over a gently flowing road while elegantly balancing a champagne tower atop its hoodThis visual effectively captivated industry interest, serving as a long-anticipated reveal of the company’s “muscle.” The debut of the ET9 during NIO Day 2024 officially signified its entry into the executive car market, equipped with twelve proprietary technologies developed entirely in-house, among which 1,081 patents are currently pending.

Nevertheless, as NIO strives to capture the high-end market, it faces the challenge of overlapping with established models like the 78 Series (including the BMW 7 Series, Audi A8, Mercedes S-Class, and Porsche Panamera). Industry analysts remain uncertain whether NIO can penetrate deeply into a sector in which traditional brands have rooted strong market presences for years.

Li Bin candidly noted that the 78 Series exists within a niche market that is notoriously tricky for Chinese brands to infiltrate

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Even prestigious models like the Mercedes E-Class experience challenges in this regard, as this segment heavily relies on societal consensus and consumer psychologyHe elaborated that the marketing approach for the ET9 significantly differs from previous NIO models, emphasizing that promoting an executive flagship diverges greatly from marketing the more conventional models such as the 5, 6, 7, and 8 series.

In fact, not just NIO but several Chinese automotive manufacturers are directing their efforts toward the premium marketThe likes of Xiaomi with its performance-oriented SU7 Ultra, BYD's luxurious models, and Zeekr's MPVs all represent a changing landscape where domestic producers endeavor to redefine perceptions surrounding Chinese automotive capabilities.

According to Li Bin, breakthroughs by Chinese brands in high-end executive vehicles can enlighten users about advancements in technology, experience, and service areas, provoking them to reconsider the viability of purchasing a domestic flagship model

This advancement has the potential to disrupt established monopolies that traditional brands like BMW, Benz, and Audi have maintained within the premium segment.

Qin Lihong shared a similar perspective, articulating that the automotive industry does not conform to a conventional winner-takes-all model, given that the market share for any single manufacturer rarely exceeds 15%. This reality stems from the industry's inherent weight and the fact that, while automobiles are industrial products, they deeply influence lifestyle choices and societal identity.

He stated that entities like BYD and its brands, NIO's ET9, alongside others, signify robust trials for Chinese manufacturers in the high-end segment, creating complementary competition across various niches that include luxury sedans and high-performance off-road vehiclesHe acknowledged that the high-end executive vehicle market serves as a fortress for international luxury brands; thus, numeric success in this field by Chinese counterparts not only poses challenges but also underscores the considerable value of these initiatives.

Turning attention to the compact car market, the global volume exceeds ten million units, and the Firefly brand, along with its lightweight vehicle, is being positioned for overseas expansion

Despite initial criticisms regarding its design, which led some social media users to compare its headlights to an iPhone camera, the Firefly stands outIn fact, the official launch has sparked playful banter among the social media community about its headlamp design.

The market sentiment regarding Firefly raises concerns about whether consumers in China would be willing to invest in a compact A-segment vehicle priced at 148,800 yuan, and whether it can garner sufficient sales in a competitive environmentCompeting with traditional compact models like the Mini and Smart, as well as domestic brands like Dolphin, the Firefly must carve out its niche amidst strong rivals.

However, when considering NIO's strategic positioning across its three brands, it becomes evident that NIO intends to target the luxury market, Liyou aims for the mainstream family market ranging from 200,000-300,000 yuan, and Firefly occupies the compact segment, paralleling the developmental pathways paved by established brands like BBA.

Li Bin emphasized that the Firefly was designed from inception for global consumers, with aspirations to craft the best compact vehicle for a worldwide audience, and the model serves as NIO’s ambassador as it ventures into global markets

He underscored the importance of considering global customer preferences in the design approach.

Regarding the market potential and product capabilities of Firefly, Li Bin stated that while the compact segment within the Chinese market may currently be limited, it caters to a global market exceeding ten million unitsIn Europe, the compact segment occupies a space of over four million units in sizes comparable to Firefly, linked intricately to user habits, scenarios, and consumer preferencesHe believes Firefly has superior product capabilities when juxtaposed with the Mini and envisions that while only one model may exist in China, it might be tailored based on regional needs in international markets.

Beyond the international arena, the Greater Bay Area (GBA) is emerging as a crucial focus for numerous enterprises, with NIO also recognizing its significanceLi Bin affirmed that the GBA represents a vital market for all three of NIO’s brands, committing considerable investments in infrastructure and sales service networks

NIO has already secured a user base in Macau that surpasses that of BBA and TeslaThey are keen on launching in Hong Kong as soon as the right-hand-drive version is successfully developed.

It's worth noting that, due to various factors, including vehicle size and brand positioning, the Firefly must establish its distinct sales and service networksShould sales volumes rise, NIO will confront challenges to ensure that production and service capabilities scale accordinglyTo address this, Li Bin articulated that Firefly would collaborate with local partners in Europe to efficiently establish sales and service infrastructures, varying from NIO's direct-to-consumer approachGiven that only one product exists, functionality in service facilities and infrastructure becomes crucialThe compact nature of the Firefly, along with its smaller battery size, necessitates a different measure of efficiency and speed for deployment compared to NIO’s extensive battery-swapping network.

This year’s reshuffling within the new energy vehicle market has accelerated, as many manufacturers have started to face significant challenges, including bankruptcies

For NIO, which has yet to achieve profitability, the sustainability of its sales growth through its three brands to accelerate profitability and remain resilient within an intensely competitive market has sparked widespread interest.

In Li Bin's mind, the automotive industry resembles a marathon run through mudA century ago, more than a thousand automotive companies flourished in America, but only a handful managed to persevereHe anticipates that while a considerable number of automotive enterprises will survive, significant shifts in market concentration are unlikely to occur, though rankings will undoubtedly evolveBy 2035, he anticipates that at least five of the top ten automotive companies globally will hail from China, which could occupy approximately 40% of the market share worldwideAs for NIO's positioning, Li Bin underscored an absolute commitment to intensifying efforts to ensure the company does not lag behind.