Nio will introduce its first plug-in hybrid (PHEV) model in 2026 under the Firefly brand. It will target overseas markets like the Middle East, North Africa, and Europe, Reuters cited two people close to Nio’s investor CYVN Holdings.
Nio will introduce hybrids to tackle obstacles they experience abroad, such as slow expansion swapping station infrastructure and tariff restrictions, the report noted. Nio previously strictly denied launching the PHEV model, claiming Firefly would be an EV-only brand.
EU imposed additional tariffs affect only all-electric vehicles and do not extend to PHEVs, leading many Chinese EV makers to adjust their strategies. Nio is subject to additional 20.8% import duty on the top of 10% existing tariff, bringing the total to 30.8%. This would significantly affect plans for entry-level budget Firefly brand.
Nio decided to develop an extended-range hybrid under the Firefly brand also on advice from CYVN Holdings, an Abu Dhabi-based investment firm and significant investor in the company, report notes. CYVN suggested this move could help increase sales in the Middle East, where infrastructure for large-scale EV adoption is still underdeveloped.
Nio plans to launch the hybrid model by late 2026, with deliveries starting in 2027, sources say. The model will be marketed solely overseas, as Nio intends to keep its China lineup focused on all-electric battery-swapping vehicles. Nio operates over 2600 swap stations in China.
On November 1, local media outlet Yicai reported that the Firefly model would use PHEV powertrain and was set for a 2026 release. However, Nio’s co-founder and president, Qin Lihong, later claimed it was a fake report, clarifying that the Firefly brand will adhere to a purely electric strategy with charging, swapping, and upgrading capabilities.
Building battery-swapping infrastructure outside China is more challenging than expected for Nio. The company initially set its target to install 120 battery-swapping stations in Europe by the end of 2023. As of today, Nio has installed 57 swap stations across five European countries. Nio opened a battery swap station plant in Hungary, Biatorbágy, which started production in late 2022.
Nio entered Europe in 2021 through Norway, followed by Germany, Netherlands, Denmark, and Sweden in October 2022. Nio’s plan 25 countries by 2025 targeted expansion to 25 countries by 2025, including Italy, Spain, France, Switzerland, and the UK. In 2023, a company executive even announced Nio was scouting PSS locations in the UK as the launch was approaching. Those plans were later quietly scrapped.
In September, Nio sold 22 cars in Germany, bringing the 2024 cumulative sales to 323 units. In China, Nio sold 20,049 EVs in October, including 4,319 Onvo L60.
On October 23, Nio entered the Middle East through the United Arab Emirates and launched a new arm for the Middle East and North Africa (MENA) region, Nio MENA. The first Nio House in MENA will open in Abu Dhabi later this year.
A long, long road is ahead for Nio and its shareholders. While admirable in their aspirations, the company burns money every quarter without any profitability. The sales numbers are just too low.