NIO CEO William Li has warned against using electric vehicles (EVs) as a "political target" after the company announced its expansion plans in Europe.
The warning comes as the European Union (EU) deliberates on imposing tariffs on Chinese EVs.
NIO CEO William Li has warned against using electric vehicles (EVs) as a "political target" after the company announced its expansion plans in Europe.PEDRO PARDO/AFP via Getty Images
Expansion of NIO Amid Political Pressures
NIO inaugurated its largest showroom in Europe this week, situated in Amsterdam, as part of its expansion plans. According to Electrek, this new eight-floor NIO House, a departure from its typical two-floor design, is the company's second showroom in the Netherlands and seventh in Europe.
These "Houses" serve as platforms for showcasing and retailing NIO's range of EVs, underscoring the firm's ambitious plans for growth in the European market.
NIO Remains Firm on Its European Expansion Plans Despite Growing Tension Between EU, China
Despite the European Commission initiating an inquiry into Chinese EV subsidies last year, NIO still proceeds with its European expansion efforts. China recently hinted that it was ready to implement tariffs as high as 25% on imported cars with large engines as trade tensions escalated with the EU and the United States.
But despite the growing tension, NIO is sticking to its expansion plans in Europe. This week, William Li reiterated this stance to reporters, affirming that the company will continue its expansion in Europe.
Li emphasized the importance of EVs in promoting environmental advancement but said they should not be used as a "political target." He also mentioned a potential establishment of a manufacturing facility in Europe in collaboration with a regional partner, but only if the EV maker manages to sell approximately 100,000 vehicles annually.
NIO's sales figures in Europe last year were relatively low, with only 2,404 vehicles sold. However, NIO's latest showroom, situated in a bustling location where around 10,000 people pass every day, could help the company grow.
The surge in EV sales in the Netherlands tripled in 2023, reaching 128,000 units compared to 43,000 in 2019. That was about 30% of new vehicle sales, revealing the growing demand for EVs in the country.
Last week, NIO introduced its first EV model under the recently unveiled Onvo mass-market brand. Priced at $30,500, the Onvo L60 electric SUV enters the market as more than 10% less expensive than Tesla's Model Y in China.
Measuring 4,828 mm in length, 1,930 mm in width, and 1,616 mm in height, the Onvo L60 is a direct competitor to Tesla's popular Model Y, which is 4,750 mm long, 1,921 mm wide, and 1,624 mm tall.
The newly launched NIO Onvo L60 boasts a competitive CLTC range of up to 555 km (341 mi). However, the scenario could vary significantly in Europe. NIO's Onvo brand will reportedly introduce a larger electric SUV next year. The market can also expect the launch of four new NIO brand vehicles: the ET9 sedan, ET6 sedan, ES8 SUV, and ES7 SUV.
Last month, NIO recorded a remarkable surge in EV deliveries, totaling 15,620 units, marking a substantial 135% increase compared to the previous year. Notably, models like the EC6, ES6, and ET5 witnessed impressive month-over-month growth, with gains of 53%, 48%, and 52%, respectively.
With a well-designed product, William Li expressed confidence in the EV market. He noted that a single EV model could sell enough, as Tesla and BYD had proven if the product is made correctly.
