Nio, a Chinese company, has launched the Firefly brand in an effort to compete with BMW’s Mini.

Firefly, a lower-cost brand that Nio (9866.HK) introduced on Saturday, was positioned as a competitor to BMW’s Mini and Mercedes’ Smart in the Chinese electric vehicle manufacturer’s most recent effort to expand its customer base and increase sales.

At the annual company event in Guangzhou, CEO William Li disclosed the launch of the new brand and declared that pre-sales would commence immediately. The prices of the products will commence at 148,800 yuan ($20,394).

He presented three Firefly cars in lavender, lemon, and beige, explaining that the vehicles were equipped with autonomous parking technology and a compact 4.7 meter turning radius.

According to the Firefly app, the cars will be officially introduced in April, and customers are able to make orders.

“We are building the Firefly car to be smarter than Mini and be more Mini than smart cars,” Li asserted.

BMW (BMWG.DE) has introduced a new pure electric Mini model that is priced at 148,800 yuan in China. Mercedes’ Smart #1 car is priced at 154,900 yuan.

Domestic brands The competition that Firefly will face includes BYD’s (002594.SZ), opens new tab Seal, and Xpeng’s (9868.HK), opens new tab Mona.

Nio, a major participant in the Chinese electric vehicle (EV) market, has been introducing more affordable models this year in order to combat the increasing price competition. In May, the company introduced another model, the “Onvo.”

Nio’s executives previously stated that the Firefly brand was intended to increase the company’s market share in Europe, but the company’s European sales are limited to hundreds of vehicles annually.

It would have competed with Renault, Stellantis’ Fiat and Peugeot, and BMW’s Mini in the European compact car segment, which has an annual demand for 4 million vehicles.

However, in October, the European Commission implemented an additional tariff of over 20% on Nio’s vehicles, which includes Firefly EVs, that were exported from China to the region. This tariff will remain in effect for the next five years. Analysts have noted that this will significantly diminish the brand’s pricing competitiveness.

Li failed to provide plans for the locations where Firefly would be sold during the event.
In 2025, Nio intends to double its sales and attain break-even in 2026. However, this month, the company disclosed that its sales growth was two years behind schedule.

Reuters reported in November that Nio intended to introduce its first extended-range hybrid model under the Firefly brand in 2026 for sale exclusively in international markets.

$1 is equivalent to 7.2961 Chinese yuan renminbi.
$1 is equivalent to 7.2961 Chinese yuan renminbi.