Nio's Alps sub-brand's models to ditch LiDAR and adopt 1 Orin chip, report says

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Alps will use a pure vision solution similar to Tesla's on its smart driving system to cut costs, according to local media.

(Image credit: CnEVPost)

Nio's (NYSE: NIO) sub-brand codenamed Alps will use a pure vision solution similar to Tesla's on its smart driving system to keep costs down, according to a new report.

Alps' smart driving solution will be based on a single Nvidia Orin X chip with LiDAR removed, local media outlet HiEV said in a report today.

The Nio brand's eight models currently on sale are based on the NT 2.0 platform, which comes standard with a single roof-mounted LiDAR and an Adam supercomputer powered by four Orin chips.

Alps plans to launch its first model, an SUV to take on the Tesla Model Y, later this year, the HiEV report said.

The use of a single Orin chip and the removal of LiDAR will significantly differentiate Alps' smart driving from the Nio brand, the report noted.

Alps' first car will start at between RMB200,000 ($28,000) and RMB250,000, with the goal of delivering it with pilot-assisted driving in urban areas, the report said.

Lower-cost smart driving solutions give Alps a chance to disrupt the market, the report noted.

Nio confirmed in August 2021 that it would enter the mass market through a sub-brand, and said in subsequent communications that it has two sub-brands, internally codenamed Alps and Firefly.

Alps is thought to target the family car market priced between RMB 200,000 and RMB 300,000, while Firefly will target the sub-RMB 200,000 market.

On December 5, Nio founder, chairman, and CEO William Li said in a call after the company announced its third-quarter earnings that Alps completed trial production of its VB (Validation Build) prototype, and that there was still enough time to optimize and improve it.

On January 12, LatePost reported that Alps' first model will be an SUV and the second a sedan, both priced under RMB 300,000 yuan.

The Alps team has recently completed a series of adjustments, with autonomous driving R&D and cockpit-related businesses largely integrated with the Nio brand, with some businesses still operating independently, according to the LatePost report.

Alps has operated independently since its inception, with a full R&D department. By early 2023, the sub-brand's team size exceeded 800, with the overlap with the Nio brand gradually becoming more significant.

Alps previously had its own smart cockpit team, but Nio's main brand cockpit team alone can finish almost all of the sub-brand's work, LatePost said last week, citing a person close to Nio.

Li said in an internal letter in November that the company would merge duplicate departments and positions, and after that, Alps entered a period of restructuring, the story noted.

Li's November 3 internal letter outlined plans for organizational optimization, including a reduction of about 10 percent of positions and an emphasis on improving execution efficiency, as previously reported by CnEVPost.

($1 = RMB 7.1962)

Nio Alps' 1st model to be SUV, deliveries to begin in H2, report says