(Yicai) Nov. 1 -- Nio has denied media reports that said the Chinese electric vehicle startup plans to enter the hybrid auto market and confirmed that it will debut its pure EV Firefly brand during Nio Day 2024 on Dec. 21.

Known for its extensive network of battery swap stations, Shanghai-based Nio clarified on Weibo today that Firefly models will not use range extender powertrains after sources told Yicai that the Shanghai-based firm may introduce extended-range hybrids under the new brand by 2026.

Speculation had been fueled by recent job postings on Nio’s website for engineers specializing in powertrain noise, vibration, and harshness, and with expertise in intake and exhaust systems, areas which are generally not associated with pure EVs.

The Xpeng and Li Auto rival has so far refrained from producing hybrids and is building an extensive battery swap network across China. Chairman and Chief Executive Li Bin has repeatedly affirmed that neither the carmaker’s main Nio brand nor its Onvo and Firefly brands plan to have hybrids.

But demand for range-extended and plug-in hybrids is on the rise. From January to September, retail sales of plug-in hybrids jumped 69 percent year on year to 2.2 million, while sales of extended-range hybrids more than doubled to 811,000, according to data from the China Passenger Car Association. Sales of pure EVs reached 4.1 million, an 18 percent increase.

Hybrid models also offer better profit margins. Li Auto, with its popular extended-range hybrids, led among Chinese EV startups last year with a net profit of CNY11.8 billion (USD1.7 billion) and a gross profit margin of 22.2 percent, surpassing Tesla’s 18.2 percent.

Leapmotor, another domestic EV startup, began selling hybrids in late 2022, reaching a positive gross profit margin for the first time last year. It has now achieved monthly sales above 30,000 units. Since early this year, several pure EV makers, including Avatr, Zeekr, IM Motors, and Aion, have unveiled plans for hybrids.

Editor: Emmi Laine