(Yicai Global) Feb. 22 -- Nio plans to build a new plant in China’s eastern Anhui province to make its forthcoming mass-market Firefly brand, according to an insider at the Chinese electric carmaker.

The exact location of the dedicated plant has yet to be decided, the person told Yicai Global.

Shanghai-based Nio is expected to take over troubled Leopaard Motors’ plant in Chuzhou, Anhui, to produce Firefly-branded vehicles, Cailian Press reported yestrday, citing a local government source. More information will be disclosed next month or in April, the person added.

Firefly-branded cars, which support both battery swap and battery rental, will be marketed in Europe as a rival to Volkswagen’s signature Polo model, the Nio insider told Yicai Global. Compared with electric vehicles of Nio’s main brand and its Alps sub-brand, Firefly models have fewer smart driving functions but will still outperform European market competitors on intelligence.

Firefly models are micro- and small-sized vehicles priced between CNY100,000 and CNY200,000 (USD14,500 and USD29,000) apiece, Nio co-founder Qin Lihong has said, adding that they are expected to hit the European market by the third quarter of next year.

Vehicles under Nio’s main brand are too big for European buyers, while smaller cars such as those in the Firefly range will likely be more popular, according to Cui Ye, an executive-level manager at an EV manufacturer.

Developing a new platform requires investment of at least CNY700 million to CNY800 million, and constructing new research and development, production, and sales systems also calls for the commitment of billions of Chinese yuan, Cui noted.

Even remodeling an old factory costs CNY700 million to CNY800 million, Cui said, adding that Nio must be very optimistic about the prospects of the entry-level market if it is willing to invest such a huge sum in the Firefly project.

Nio sold 10,067 EVs last month, a 1 percent decline from a year earlier. The carmaker’s co-founder and Chief Executive Li Bin said that it expects to sell more than Lexus this year, with the target set at over 200,000 units.

Editor: Futura Costaglione