China's Nio on Sunday said it would launch its new Firefly electric vehicle brand in Europe early in the first half of 2025, betting that it would help the company overcome European Union tariffs.

Nio, the company famed for its innovative battery-swap technology, has launched a new ‘Firefly’ sub-brand aimed at conquering the increasingly competitive small electric car market. Its first car – a Honda e -inspired five-door supermini – has been revealed in China, with plans to reach Europe in the first half of 2025.

Nio wants Firefly to be a global brand selling cars in Europe and the Americas but not in the U.S. for now. The first Firefly EV has Honda e design cues and promises to be maneuverable and roomy inside.

Despite being Nio's entry-level brand, the Firefly EV features a focus on safety, as well as dynamics and technology. Nio is saving most of the details until closer to the market launch but confirmed features like a tight 15.4-foot turning circle and automated parking technology.

Nio unveiled a lower-cost brand named Firefly on Saturday that it touted as a rival to Mercedes' Smart and BMW's Mini in the Chinese electric vehicle maker's latest bid to broaden its customer base and boost sales.