(Yicai Global) Aug. 1 -- Nio’s shares surged after a media report said the Chinese electric auto startup plans to introduce a lower-priced brand to compete with mid- and low-end vehicle makers.

The firm’s stock price in Hong Kong [HKG:9866] closed up 8.3 percent at HKD162.1 (USD20.65) today, after hitting a high of HKD166.8 in earlier trading. Its shares in the US stock market [NYSE:NIO] ended up 1.2 percent at USD19.73 on July 29.

Nio will unveil its third independently operated brand after Nio and Alps at prices between CNY100,000 and CNY200,000 (USD14,800 and 29,600), tech information website 36Kr reported today, citing an informed source. Nio is now hiring for the new brand’s core team, the report said.

The Shanghai-based company has yet to respond to the report.

Formed in 2014, Nio has rolled out six models costing between CNY328,000 and CNY598,000. Chairman and Chief Executive Li Bin announced the new Alps brand on an earnings conference call in June, saying the models would cost between CNY200,000 and CNY300,000 and mass production was expected to start in 2024.

Fierce competition has pushed Nio to enter the lower-priced market segment. Nio delivered 50,827 vehicles in the first half, up 21 percent from a year ago, but the number was lower than the 68,983 sold by Xpeng Motors and the 60,403 sold by Li Auto. It was also behind emerging brands Nezha Auto, at 63,131, and Zhejiang Leapmotor Technology at 51,994.

Nezha and Leapmotor mainly sell entry-level vehicles costing less than CNY200,000 apiece. Xpeng’s cars cost around CNY200,000. Nio and Li Auto target the mid- and high-end markets, with their cars costing above CNY300,000.

Editor: Tom Litting