Tesla challenger NIO launches another electric SUV in China
- The unprofitable Chinese carmaker’s new coupe sport utility vehicle will compete against Mercedes-Benz and Tesla
Cash-strapped electric car upstart NIO is introducing its third sport utility vehicle (SUV), a streamlined model aimed at spurring demand in China’s slowing electric vehicle (EV) market.
NIO did not disclose the price for the electric SUV coupe, which comes with a panoramic-view window and is set to compete against vehicles such as the Mercedes-Benz GLC Coupe and Tesla’s Model Y. NIO’s existing models are the ES8 and ES6 SUVs, and the EP9 performance car.
“Coupes fall in a niche market in China and it’s really hard to position this kind of product,” said Yale Zhang, managing director of Shanghai-based consultancy AutoForesight. “But if they only aim at selling hundreds of cars a month, it should be fine.”
The unprofitable, New York-listed carmaker is battling an unprecedented slump in Chinese auto sales, including EVs, as the country’s economy cools. The company also faces intensifying competition from the likes of Tesla and Daimler just as some investors scrutinise its funding situation.
Backed by technology giant Tencent Holdings, NIO sought US$200 million from founder William Li Bin and a Tencent affiliate – although it has not clarified whether the investment has been completed – and has also reduced its workforce.
