Nio (NIO) is pushing back the European launch of its new Firefly EV to Q3, initially slated for the first half of the year, after it underestimated challenges involved in sales and service network across the region, Reuters reported Tuesday, citing the Chinese company.

Chief executive officer William Li told reporters that the progress has been slower than expected, but the company will announce several new European partnerships during the Shanghai Auto Show to help accelerate its expansion, the report said.

Nio's right-hand drive version of Firefly is expected to hit the market by October, Nio's president Qin Lihong said, adding that the company is exploring expansion plans in Southeast Asia and the UK.

The company will also sign a deal this week to begin selling in Singapore, with plans to expand the Firefly brand into 20 markets outside of China, the report said, citing Lihong.

Nio did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)