Nio Will Launch Its First Independent Phone, Increase Electric Car Connectivity

JAKARTA - The Chinese company, Nio, plans to launch its first self-sufficient phone by the end of September. This was announced by the Chinese electric car maker. The move aims to increase the appeal of their cars through software and better connectivity.

Nio is the latest Chinese automotive company to participate in the trend of launching a car system that allows drivers to use their smartphones to remotely open doors, turn on air conditioning, or turn on cars, among other functions.

Nio founder and CEO, William Li, is one of the main drivers of this mobile phone project, which is targeted primarily at Nio car drivers.

"Our phone business is not to compete with these phone manufacturers," Li told investors in a earnings call on Tuesday night, August 29. "On the other hand, we want to use cell phones as a tool to provide the best experience for our vehicle users."

Along with the trend of smartphones that generate huge demand for connectivity from drivers, more automotive manufacturers are looking for ways to stay ahead in increasing competition.

The founder of Zhejing Geely Holding acquired mobile phone manufacturer Meizu last year and the companies announced they would integrate consumer electronics and travel.

Huawei Technologies has partnered with automotive manufacturers, including the Seres Group, to provide a Harmony operating system to support electric cars (EVs).

However, the Nio mobile project has raised concerns among some investors as the company is struggling with increasingly widening losses and a decline in sales due to the price war that Tesla started in January.

Nio recorded a net loss of 6.12 billion yuan (IDR 12.7 trillion) in the second quarter, compared to a loss of 2.75 billion yuan (IDR 5.7 trillion) in the same period last year.

At the end of June, the company had cash and cash equivalents of USD 4.3 billion (IDR 65.4 trillion) and received an investment of USD 1.1 billion (IDR 16.7 trillion) in July from CYVN Holdings.

Li said that Nio will launch the first model of their new electric car brand targeted for the mass market in the second half of 2024.