China's Nio plans to sell its first hybrid car overseas only, sources say

Nio's first hybrid car: Chinese electric vehicle maker Nio is planning to launch its first hybrid model in 2026 and will only sell it in overseas markets, including Middle East, rth Africa, and Europe, according to two people with kwledge of matter.

Nio to date has only manufactured pure electric vehicles. It is building hybrid vehicle to address challenges faced by Chinese firms selling EVs in foreign markets, which have put up trade barriers and been slower to install charging facilities.

Development of extended range hybrid, under Firefly brand, stems from suggestions by Nio's main investor, Abu Dhabi investment vehicle CYVN Holdings, that this could boost sales in Middle Eastern markets, where infrastructure is t ready for mass adoption of EVs, said people, who declined to be named as plan is private.

It is scheduled to be launched in late 2026 and delivery will start in 2027, one of people said. model will t be sold in China, where Nio would continue to offer only EVs with batteries that can be swapped, y added.

Nio declined to comment on hybrid model plan. company said that Firefly brand would use pure EV techlogy, without elaborating furr.

Chinese media outlet Yicai first reported Nio's plan to develop a hybrid model on Friday.

Nio will unveil first model under Firefly brand at its annual event on December 21. It is counting on model to sell into European's mass market with designs catering to European consumers' preference for nimble small-sized cars.

European Union has imposed new tariffs of more than 20 per cent on Nio's EVs to region for next five years on top of an existing 10 per cent import duty, which one of sources said had largely undermined Firefly's competitiveness.

While Chinese-made EVs are subject to tariffs, hybrids are still exempted, encouraging plans for hybrid exports to Europe.

Nio received $2.2 billion in investment from CYVN Holdings in 2023, largely relieving liquidity pressure on Chinese automaker, which has struggled to break even while doubling down on its research and development efforts.

Nio agreed in February 2024 to license its EV techlogies to CYVN.