Chinese EV start-up Nio launches smartphones unit week after CEO says carmaker to make mobiles for vehicle owners

Nio Mobile Technology was incorporated on Thursday, according to data provider Qichacha

The phones are expected to be part of Nio’s ecosystem, but it will struggle to compete with established brands, angel investor says

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A Nio showroom in Beijing. Photo: Bloomberg

Published: 8:20pm, 5 Aug 2022

Chinese smart electric vehicle (EV) start-up Nio has set up a smartphone subsidiary with a registered capital of US$100 million.

Nio Mobile Technology was incorporated in Anting, Shanghai, where the carmaker is headquartered, on Thursday, according to data provider Qichacha. Nio declined to comment on its mobile phone business.

The establishment of the unit came after William Li, Nio’s co-founder and CEO, said last week that the carmaker aimed to develop a smartphone for its vehicle owners each year.

“The phones are expected to be part of Nio’s ecosystem and to be compatible with its EVs’ operating system,” said Yin Ran, an angel investor in Shanghai. “[But] it will be difficult for Nio, a carmaker, to design and make smartphones that can compete against established brands such as Apple and Xiaomi.”

The Shanghai EV maker, along with Guangzhou-based XPeng and Beijing-headquartered Li Auto, is regarded as China’s best response yet to US carmaker Tesla, which is the runaway leader in China’s premium EV segment. Their EVs feature high-performance batteries, some form of autonomous driving capabilities and sophisticated in-car entertainment systems.

All three start-ups are ramping up the development of technologies or digital products that can connect with their cars, as they try to gain ascendancy in the world’s largest EV market.