In a strategic move aimed at cost reduction, Nio’s sub-brand Alps is set to embrace a pure vision solution similar to Tesla’s for its smart driving system. The decision, outlined in a recent report, details Alps’ plan to utilize a single Nvidia Orin X chip, removing LiDAR from its smart driving solution. This shift is part of Alps’ broader strategy to differentiate itself from Nio’s existing smart driving models and aims to disrupt the market with lower-cost alternatives.
Key Features of Alps’ Smart Driving Solution:
– The adoption of a single Nvidia Orin X chip.
– Removal of LiDAR technology to enhance cost-effectiveness.
– Plans to launch the first model, an SUV, later this year to compete with Tesla’s Model Y.
– Pricing aimed between RMB 200,000 ($28,000) and RMB 250,000.
– Focus on pilot-assisted driving capabilities in urban areas.
Strategic Differentiation and Market Disruption:
Alps’ decision to utilize a single Orin chip without LiDAR is expected to significantly set apart its smart driving solution from Nio’s premium models. By targeting a lower price range, Alps aims to disrupt the market, presenting a cost-effective alternative to consumers. The report emphasizes that this approach aligns with the growing trend of electronic components replacing traditional mechanical parts in the EV industry.
Nio’s Larger Strategy and Brand Differentiation:
– Nio’s existing models use the NT 2.0 platform with LiDAR and multiple Orin chips.
– Alps’ models will be based on Nio’s next-generation vehicle platform, NT 3.0.
– Nio’s smart driving system on NT 3.0 may undergo further innovations, including potential chip upgrades.
Implications for Market Competition:
Alps’ adoption of a Tesla-like vision solution reflects broader industry shifts, emphasizing technological innovation and cost leadership. The move aligns with Nio’s larger goal of entering the mass market through sub-brands, with Alps targeting the family car market. As EV competition intensifies, the strategic choices made by sub-brands like Alps will play a crucial role in shaping the industry landscape.
**Note:** RMB is the Chinese Yuan, and the conversion rate used is $1 = RMB 7.1962.
