Nio is reportedly in deliberation regarding its potential entry into the North American market by the year 2025. The information, disclosed by Nio US CEO Ganesh Iyer at the Reuters Events Automotive USA 2023 conference, highlighted the company’s contemplation of various partnership possibilities as part of its strategic approach to North American expansion.
Speaking at the conference, Iyer emphasized the significance of building infrastructure before introducing Nio’s EVs to the North American market. This consideration aligns with Nio’s commitment to delivering an “immersive user experience” as a distinguishing factor for the brand, as conveyed by Iyer in statements reported by Reuters.
This marks the second occasion in a short span where a Nio executive has shed light on the company’s intentions to penetrate the North American market. On November 4, Nio US CEO Ganesh Iyer stated at a conference in New York that the company aims to launch its inaugural car in the United States by 2025. He underscored the importance of collaborative efforts involving government support, policymakers, supply ecosystems, and infrastructure readiness to achieve this goal.
Notably, Nio plans to import its China-manufactured EVs into the US instead of pursuing local production to benefit from tax incentives. The decision, however, may pose pricing challenges for Nio in comparison to US competitors like Tesla, which enjoy tax advantages. The Inflation Reduction Act (IRA), enacted by the US government last year, stipulates that EVs must be produced in North America with locally sourced batteries to qualify for tax credits, placing imported vehicles at a disadvantage.
Addressing the issue of local production, Iyer revealed that building factories in the US would be economically impractical for Nio, given the cost considerations. Despite considering local production and shortlisting potential states for factory locations, Nio opted to continue manufacturing EVs in China for the US market. Iyer explained that several local suppliers in China exclusively provide components to Nio, making local production in the US less viable.
Nio had previously announced its global expansion plans at the Nio Day 2021 event on December 18, 2021, with Germany, the Netherlands, Sweden, and Denmark identified as target markets. The company’s founder, chairman, and CEO, William Li, expressed the goal of serving users in over 25 countries and territories worldwide by 2025, including core automotive markets such as the US, Western Europe, Australia, and New Zealand, as reported by local media.