NIO Inc. has launched its third sport utility vehicle, a compact version aimed at boosting competition in China's laggard electric vehicle market.
The price of 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 Inc.'s Model Y, has not been disclosed by NIO. The existing models of the company are the ES8 and ES6 SUVs and the EP9 performance car.
"Coupes belong in China's niche market and it's really hard to spot this type of product," said Yale Zhang, Shanghai-based consultancy managing director of AutoForesight. "But if they only aim to sell hundreds of (electric) cars a month, it should be fine," he added.
Rising competition
As the country's economy cools, the unprofitable carmaker is being hounded with an unprecedented slump in Chinese car sales, including electric vehicles. The business is also seeing increased competition from the likes of Tesla and Daimler AG as some investors are weighing their funding options.
With ample support from technology giant Tencent Holdings Ltd., NIO sought $200 million from Founder William Li and a Tencent affiliate - although it did not clarify whether the investment was completed - and also reduced its workforce.
NIO's shares in the US stock markets have fallen by more than 60 percent since the company's first public offering last year in New York.
NIO had reduced its workforce from 9,900 in January to 7,800 by the end of the third quarter. According to media reports, after burning through more than $5 billion in operational costs and other expenditures in four years, the company failed to get support from local government.
Falling sales
China's electric vehicle sales have fallen for four consecutive months, while the overall automotive market has slipped for 16 of the past 17 months.
According to competitor XPeng Motor, this is affecting funding for other electric car ventures in mainland China. As the government tries to spur the industry, China is raising its 2025 sales target for electric-powered cars.
Meanwhile, NIO stock is bouncing back after falling to prices as low as $1.19 per share. And the Chinese electric car maker looks to be better positioned after announcing higher than expected sales and launching a new alliance with Intel Mobileye.
The company's stock price jumped from its low on October 2 by more than 100 percent. Yet NIO is down nearly 77 percent from its 52-week peak at the current share price of $2.40.
