Flagship sedans and boutique compact cars are among the toughest segments to crack in the automotive industry. The former demands captivating design, premium materials, and indisputable brand value. In China, any automaker attempting a flagship sedan faces market skepticism. Boutique compact cars, on the other hand, require precise positioning, sleek aesthetics, and exceptional cost-efficiency—BMW’s Mini has set the standard here, with no rival able to dethrone it despite numerous attempts.

But during Nio’s anniversary event, CEO William Li made a daring move, unveiling the flagship ET9 sedan and Firefly’s first compact car model—both in a single evening.

ET9: Nio’s decade-long innovation in a single sedan

The ET9, Nio’s new executive sedan, represents a decade of innovation, according to Li. Designed to compete with luxury stalwarts like the Audi A8L and BMW 7 Series, as well as domestic rivals like the Yangwang U7 and Maextro S800, the stakes are high.

The ET9’s standout feature is its dual architecture—mechanical and digital. Mechanically, it introduces the Tianxing fully active suspension system and an industry-first steer-by-wire system. Its promise of unparalleled stability, demonstrated in last year’s Nio Day “champagne tower challenge,” is now realized in production, delivering what Nio calls the “comfort of cruising as if in the stratosphere.”

Powered by a 100 kilowatt-hour battery pack, the ET9 achieves a 650-kilometer range. Its 900-volt architecture allows peak charging speeds of up to 600 kilowatts. On the digital side, the ET9 employs a central computing platform driven by two Shenji NX9031 chips and a Qualcomm Snapdragon 8295 processor, seamlessly integrating smart driving, cabin functions, and power management for dynamic customization.

Luxury sedans are defined by their details, and the ET9 doesn’t disappoint. Its panoramic “Sky Island” sunroof is exclusive to Nio, while a central “Executive Bridge” caters to business users with a fully adjustable desk. Attention to craftsmanship is evident in the 200,000 precision stitches adorning the seats and a prosperity-symbolizing coin motif on the speaker grilles. Heated components extend to the armrests, steering wheel, and footrests.

Photo of the ET9, on display during Nio Day 2024. Photo source: 36Kr.

However, two aspects draw scrutiny: the ET9’s underwhelming details on smart driving capabilities and the absence of its anticipated cylindrical battery.

The sedan also introduces premium perks, including three years of chauffeur services (50 hours annually) and 12 annual business travel pickups. Pricing starts at RMB 788,000 (USD 110,320) or RMB 660,000 (USD 92,400) with the battery-as-a-service (BaaS) subscription. A limited launch edition of 999 units is available for RMB 818,000 (USD 114,520). Nio has set an ambitious monthly sales target of 1,000 units, positioning the ET9 as a formidable rival in both domestic and global markets.

Firefly: Nio’s answer to boutique compact cars

Following the ET9’s unveiling, Nio introduced the Firefly, the first model under its new boutique compact brand. This marks the third pillar in Nio’s lineup, alongside the flagship Nio brand and the Onvo sub-brand. Priced at RMB 148,800 (USD 20,832), the Firefly rivals Mini and Smart, prioritizing sophistication over cost-efficiency.

The Firefly’s design evokes comparisons to the Honda E and iPhone Pro Max aesthetics, featuring insect-eye-inspired headlights that are distinctly polarizing. A rear-mounted motor maximizes trunk space, while airbags and parking assistance bolster safety.

Image of the first car model launched under Nio’s Firefly sub-brand. Image source: Nio.

Designed for urban agility, Nio claims the Firefly outmaneuvers its boutique competitors. Its effective cost drops below RMB 100,000 (USD 14,000) with the BaaS model, making it a compelling option despite China’s compact car market challenges, such as high ownership costs and limited second-car adoption.

While profitability may be elusive for the Firefly, it fills a niche for a true high-end boutique compact car with strong performance, standing out in an increasingly homogenized market.

Photo of the Firefly sub-brand’s debut car model, revealed during Nio Day 2024 on December 21. Photo source: 36Kr.

With Nio, Onvo, and Firefly, Nio has finally rounded out a lineup befitting a mature automaker. Each brand has a clear purpose:

  • Nio: To challenge premium automakers like BMW, Mercedes-Benz, and Audi.
  • Onvo: To stabilize sales and margins for cash flow.
  • Firefly: To target global expansion as Nio’s spearhead.

However, challenges loom. Onvo’s L60 has underperformed, and the ongoing EV price war is pressuring Nio’s bottom line. The ET9 strengthens Nio’s brand, but Firefly must drive growth to stave off more daunting challenges next year.

KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Han Yongchang and Zhang Bowen for 36Kr.