NIO remains steadfast in its commitment to launching its affordable Firefly brand in the European Union (EU), despite looming additional tariffs on imported Chinese EVs. The company’s CEO, William Li, expressed confidence in Firefly’s competitiveness during an event in Hamburg, Germany, on Wednesday.
Li criticized the EU’s decision to potentially increase tariffs on Chinese EV imports, calling it unjust. “The EU originally imposed a 10 percent tariff on Chinese EVs, and now an additional 21 percent has been added, raising it to 31 percent, which is definitely not right,” Li stated.
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Despite the tariff threats, Li emphasized that Firefly’s entry into the EU market remains a priority. “Even if we are going to be hit with so many tariffs, we still have a chance, we are still competitive, but of course, it will affect some sales and profits,” Li explained.
NIO had initially planned to launch Firefly EVs in the EU in the third quarter of 2024. However, a recent shift in plans will see the brand’s debut in China first, with the EU launch now scheduled for the first half of 2025.
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According to NIO president Qin Lihong, Firefly EVs will be priced between $13,800 (100,000 yuan) and $27,500 (200,000 yuan), making them an attractive option in the affordable EV segment. Qin confirmed that despite the delay, the brand is ready for launch.
In a bid to offset potential tariff impacts, NIO is considering local production in Europe if Firefly achieves a sales volume of around 100,000 units. However, Li acknowledged that initial volumes may not be sufficient to justify local production.
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Other Chinese EV makers, such as BYD, also remain optimistic about their expansion plans in Europe despite the tariff threats. BYD even sees the potential for higher profits on some EVs sold in Europe compared to China, even with tariffs.
NIO’s expansion in Europe continues with the opening of a new NIO House in Hamburg, Germany, on Thursday. The new showroom marks NIO’s fourth in Germany and eighth in Europe
