The Chinese manufacturer of electric vehicles Nio announced that it would introduce its first internally produced mobile phone in late September with the goal of enhancing the appeal of its vehicles through better software and connection.
It joins a growing list of automakers in China who are introducing systems that let drivers operate various automobile functions remotely via their smartphones, including opening doors, turning on air conditioning, and starting their vehicles.
The proposal for the phone, which the manufacturer is primarily aiming at drivers of its automobiles, was heavily influenced by William Li, creator and chief executive of Nio.
Li stated during an earnings call late on Tuesday that “our phone business is not to compete with those phone makers.” Instead, we would like to leverage the phone as a carrier to give our vehicle users the greatest possible experience.
As the popularity of smartphones increases motorists’ need for connectivity, more manufacturers are looking for strategies to remain ahead of the escalating competition.
The founder of Zhejing Geely Holding purchased the smartphone manufacturer Meizu last year, and the companies announced plans to combine travel and consumer electronics.
Seres Group is one of the manufacturers with which Huawei Technologies has partnered to use its Harmony operating system to power electric vehicles.
However, some investors are worried about Nio’s phone project as the company struggles with growing losses and a sales dip in the midst of a price war that Tesla initiated in January.
In comparison to the same quarter a year prior, Nio’s net loss increased to 6.12 billion yuan ($839.51 million) in the second quarter.
It had $4.3 billion in cash and cash equivalents at the end of June, and CYVN Holdings invested $1.1 billion in it in July.
In the second half of 2024, according to Li, Nio will introduce the first model of its new EV brand that is aimed at the mainstream market.
