Recently, we learned from relevant channels that the first model of NIO's sub brand Alps, DOM (internal code), is scheduled for trial production in July 2024 and is expected to be mass-produced and launched for delivery in the second half of 2024.
Trial production is the last stage before mass production, and about 3 months after trial production, the vehicle will enter the SOP (Start of Production) stage and can be delivered to the user. That is to say, if the pace goes smoothly, DOM is expected to be officially launched in October this year. According to insiders, it is expected that tens of thousands of new cars will be delivered in 2024.
Alps is one of the sub brands of NIO, and unlike NIO, which is anchored in the pure electric new energy vehicle market of over 300000 yuan, Alps focuses on the new energy vehicle market of 200000 to 300000 yuan, and all models will be developed based on NIO's third-generation technology platform NT3. NIO CEO Li Bin has stated that the Alps brand will have three models, with the first model "DOM" benchmarking against Tesla Model Y. At the 2023 NIO Day, NIO CEO Li Bin stated that through continuous optimization of the product, the first Alpine model can maintain strong product competitiveness when it is launched.
NIO's confidence in the Alps is also reflected in sales expectations. In December 2023, Li Bin stated that it is expected that a single Alpine model may achieve monthly sales of 50000 to 60000 vehicles. NIO's sales target for 2024 is to exceed 230000 units, which is 70000 units higher than its cumulative sales of 160038 units in 2023. Tesla's 2023 financial report shows that the Model Y delivered over 1.2 million vehicles in 2023, with an average monthly delivery of about 100000 vehicles, making it one of the best-selling models in the world.
The battery pack for DOM is mainly planned in two versions, approximately 60kWh and 90kWh. The new battery pack size will be compatible with the current third-generation battery swapping station, but the thickness will become thinner, freeing up more space for the vehicle cabin. In addition, DOM will adopt a new generation of motors produced by NIO to optimize size and cost.
Launching multi brand products such as Alps is one of the key factors for NIO to reduce losses. Li Bin stated on "NIO Day" in 2023 that different brands can share technology and intelligent software, which "will generate significant cost and scale advantages". According to the 2023 third quarter financial report of NIO Automobile, NIO's revenue in the third quarter was RMB 19.0666 billion, with a loss of RMB 4.8439 billion, including a net loss of RMB 4.5567 billion, a year-on-year increase of 9.8%. In the third quarter of 2021, this number was RMB 835.3 million.
Tesla recently announced that it will launch an upgraded version of the Model Y in China, with all models equipped with the new generation of autonomous driving assistance hardware HW4.0, which has stronger perception and chip computing capabilities, but the product price remains unchanged. Introducing models with more price ranges is NIO's top priority, and multiple brands have targeted similar markets. The birth of Alps' first product is bound to be unpredictable.
