Nio reportedly planning to launch first hybrid model in 2026

It is building the hybrid vehicle to address challenges faced by Chinese companies selling electric vehicles in foreign markets, which have put up trade barriers and been slower to install charging facilities

Chinese EV maker Nio is planning to launch its first hybrid model in 2026 and will only sell it in overseas markets, including the Middle East, North Africa and Europe, according to people with knowledge of the matter.

Nio to date has only manufactured pure EVs. It is building the hybrid vehicle to address challenges faced by Chinese companies selling electric vehicles in foreign markets, which have put up trade barriers and been slower to install charging facilities.

Development of the extended range hybrid, under the Firefly brand, stems from suggestions by Nio’s main investor, Abu Dhabi investment vehicle CYVN Holdings, that this could boost sales in Middle Eastern markets, where the infrastructure is not ready for mass adoption of electric vehicles, said the people, who declined to be named as the plan is private.

It is scheduled to be launched in late 2026 and delivery will start in 2027, one of the people said. The model will not be sold in China, where Nio would continue to offer only electric vehicles with batteries that can be swapped, they added.

Nio refused to comment on the hybrid model plan. The firm said that the Firefly brand would use pure EV technology, without elaborating further.

Chinese media outlet Yicai first reported Nio’s plan to develop a hybrid model on Friday.

Nio will unveil the first model under the Firefly brand at its annual event on December 21. It is counting on the model to sell into European’s mass market with designs catering to European consumers’ preference for nimble small-sized cars.

The EU has imposed new tariffs of over 20% on Nio’s electric vehicles to the region for the next five years on top of an existing 10% import duty, which one of the sources said had largely undermined Firefly’s competitiveness.

While Chinese-made electric vehicles are subject to the tariffs, hybrids are still exempted, encouraging plans of hybrid exports to Europe.