Shanghai-based Nio, often referred to as China’s Tesla, is demanding equitable treatment in the US market, similar to the access enjoyed by Tesla in China. The founder and CEO of Nio, William Li, argues that political tensions should not hinder the entry of car manufacturers into foreign markets. In an interview with the Financial Times, Li called upon the US government to provide Chinese electric vehicles (EVs) with fair opportunities in the American market.
Li emphasized the need for openness in global business, urging an end to the politicization of commercial affairs. He questioned the obstacles faced by Chinese companies when selling their EVs to US consumers, highlighting the fact that Tesla operates a major factory in China, while Nio has not announced any plans to establish manufacturing facilities in the US.
Nio considers itself an international company, with Li revealing that the majority of its investors are located outside of China. Despite this, the company faces challenges due to the protectionist measures implemented by the US. This predicament hampers the expansion efforts of Chinese EV makers, including Nio, BYD, XPeng, and Li Auto, who increasingly rely on exports.
The complex issue of accessing the US market arises from the imposition of high tariffs on Chinese vehicles and the implementation of the Inflation Reduction Act (IRA). The IRA aims to bolster domestic manufacturing and decrease America’s economic dependence on China. Consequently, Chinese companies face uncertainty regarding access to US subsidies and the treatment of Chinese-branded vehicles and EV components under the IRA. Li questioned why US consumers cannot enjoy the wide range of new energy vehicles available to Chinese consumers.
Li’s call for improved market access aligns with China’s projection to surpass Japan as the world’s largest car exporter this year. Last year, China overtook Germany to claim the second spot. However, the hurdles faced by Chinese EV makers in the US market have prompted them to concentrate on exporting to Europe, where stringent emission regulations are driving a rapid shift from internal combustion engines to EVs.
In Europe, Nio has taken steps to facilitate EV adoption by installing battery swap stations across the region. These stations allow Nio EV owners to exchange depleted batteries for fully charged ones within minutes, employing an automated process. By 2025, Nio aims to establish approximately 1,000 battery swap stations in Europe.