Chinese startup Nio will launch its mass market brand, whose project name is Alps, in the second quarter this year, said founder and CEO William Li on Tuesday.

The new brand's first model will hit the market in the third quarter and deliveries will follow in the fourth quarter.

The first model will come with a swappable battery and compete with Tesla's Model Y SUV, while the second model has been developed for larger families.

With an output of around 10,000 units per month, the new brand's first product will have a 10 percent lower manufacturing cost than the Model Y, Li said.

Li released the timetable after the New York-listed startup announced its financial results on Tuesday.

The Shanghai-based company's net loss for 2023 stood at $2.9 billion, up 43.5 percent year-on-year. Analysts said the new brand will help Nio beef up its sales.

Nio delivered 160,038 in 2023, representing an increase of 30.7 percent from 2022.

The company expects to sell from 31,000 to 33,000 cars in the first quarter this year, representing a decrease of approximately 0.1 percent to an increase of around 6.3 percent from the same quarter of 2023.

"Moving into 2024, we will prioritize our business objectives, improve system capabilities and optimize cost management," Nio Chief Financial Officer Steven Feng said.