Chinese EV maker Nio launches second-generation smartphone to boost its appeal

The new Nio Phone, starting at 6,499 yuan (US$896), has enhanced technological capabilities, allowing owners of the company’s intelligent vehicles to have a better car-driving experience, according to William Li, co-founder and CEO of the Shanghai-based carmaker.

“We hope our new products and technologies will help consumers better understand Nio,” he told reporters during the Nio In 2024 Tech Day event on Saturday. “Nio envisions building itself into a developer of smart technologies.”

Nio, founded in 2014, launched the world’s first phone as a companion device for its vehicles last September. It can initiate self-parking mode, unlock the car with a button press even if the smartphone is powered off, and transition a video call from the phone to the car’s screen and speakers.

The second-generation phone comes with Nomi GPT, an AI-powered voice assistant, offering users improved voice-activated control experience. It also allows owners to connect the phone with cameras installed in the car for live video streaming.

Nio has started selling the new phones, but it did not reveal a sales target for the device.

Nio Phone is made by Hunan-based Lens Technology, a supplier of smartphone lenses that boasts Apple as a customer.

Nio’s push into smartphones comes at a time when an EV’s appeal in China is defined by how intelligent it is, not range or cost, as these two factors are fast losing significance because of falling production costs and competition.

“Nio has been viewed as a leader in developing smart cars in China since its establishment, and it is certain that the smartphone will be welcomed by Nio car owners,” said Gao Shen, an independent analyst in Shanghai. “The company still needs to bolster deliveries to expand its customer base and shore up profitability.”

Nio, which has yet to post a profit, faces cutthroat competition on the mainland, where a discount war is further squeezing the profit margins of the country’s 100-odd carmakers.

On Saturday, Nio also launched its SkyOS operating system and unveiled the Shenji NX9031 autonomous driving chip, further displaying its tech prowess.