21-9-2023 (SHANGHAI) Nio, a prominent Chinese electric vehicle (EV) manufacturer, introduced its latest innovation on Thursday (Sep 21) with the unveiling of the Nio Phone, a high-end smartphone specifically designed to be used with its electric cars. The smartphone boasts a range of functions tailored to enhance the driving experience, including the ability to instruct the vehicle to park itself.
The release of the Nio Phone marks a significant milestone as the first car-specific smartphone to be offered by a Chinese company. This development underscores the advanced state of EV technologies in China, the world’s largest auto market, where electric cars now account for over a third of total vehicle sales.
Owners of Nio vehicles can utilize the Nio Phone to remotely command their cars to drive to their location, a feature permitted within restricted spaces and at low speeds in China. Additionally, the phone can unlock the vehicle even when it is switched off.
William Li, Chief Executive of Nio, emphasized that the Nio Phone offers more than 30 car-specific functions and represents a breakthrough in connection technologies. He expressed confidence that competitors would take note of their smartphone innovations and welcomed their engagement in this domain.
The Nio Phone is available in three models, priced between 6,499 yuan (US$890) and 7,499 yuan. Currently, sales will be limited to China, and deliveries are set to commence on September 28.
Despite concerns from some investors about taking on additional ventures amid intense price competition in China, Li remained committed to the smartphone project. Analysts suggest that Nio’s primary motivation for designing the phone may lie in collecting user data rather than generating substantial revenue.
According to Will Wong, an analyst at IDC, “Smartphones will be a good platform to collect more data, which is crucial in the current tech world and could potentially lead to better user experience and customer loyalty.”
Nio’s foray into the smartphone market signifies the growing convergence of the automotive and smartphone industries. In March, Meizu, now under the ownership of a venture affiliated with Zhejiang Geely Holding’s founder, unveiled smartphones that can connect to Geely’s Lynk & Co-branded cars, while also targeting a broader consumer base. Smartphone manufacturer Xiaomi is also preparing to enter the automotive sector.
As the ninth-ranked manufacturer of electric and hybrid cars in China, Nio has been intensifying its investments in self-developed technologies for key components such as chips and batteries. The company has fostered a loyal following among Chinese drivers through the introduction of exclusive membership clubs and the offering of Nio-branded products, including wine.
During the unveiling event, Li highlighted the company’s dedicated team of 11,000 engineers who focus on crucial aspects of smart EV technologies, ranging from chips and batteries to autonomous driving and smart manufacturing.
After experiencing a slump in sales during the first half of the year, Nio has shown signs of recovery, with August deliveries surging 81% compared to the previous year, primarily driven by the popularity of its revamped ES6 SUV. In the first eight months of the year, Nio sold approximately 94,350 vehicles, representing a 32% increase over the same period last year and outpacing the 20% growth rate observed in the Chinese electric car market.
