Used To Be Opponents Now Friends, Nio And BYD Collaborate?

Nio reported successfully sending 15.620 vehicles in April 2024. (Doc. Nio Global)

JAKARTA - The Chinese automotive world is again enlivened by the potential for cooperation between two automotive giants, Nio and BYD. This news emerged after Nio reportedly considered BYD as a new, more affordable electric car (EV) supplier.

According to a Reuters report, quoted on May 8, Nio aspires to compete directly with Tesla through his new EV line which will target a lower price segment. This new line will use Onvo's name in English and Ledao in Mandarin. The first car to be launched under this brand, namely Onvo L60, is expected to be a strong competitor to Tesla Model Y.

Initially, Nio planned to produce its own battery. However, the plan was postponed in December 2023. Instead, Nio is now focusing on efforts to save costs and recover losses.

On the other hand, collaboration with Nio will help BYD expand their income. BYD itself is actively looking for ways to spread its wings from electric car production and enter the battery supply chain. This step is considered strategic in the increasingly competitive Chinese market in terms of the selling price of electric cars.

For the record, Nio is currently also collaborating with CATL, one of the world's leading battery suppliers.

"One of the most important problems that has not been solved and has not received much attention is the battery life. This is not only a problem that Nio needs to solve, but also a problem that must be overcome by the entire industry together," said William Li, founder and CEO of Nio, as reported by Teslarati, May 8.