Chinese electric carmaker Nio is determined to forge ahead with its European expansion plans, undeterred by the looming uncertainty surrounding potential tariffs on Chinese electric vehicles (EVs) by the European Union. Founder William Li affirmed the company’s commitment on Thursday as Nio inaugurated its first showroom in Amsterdam.
“Electric vehicles are very important for the positive development of the environment; they should never be used as a political target,” Li told reporters at the showroom opening.
See also:Ā China FAW to Join Nio-Led Battery Swap AllianceĀ
Despite the EU’s contemplation of imposing tariffs, Li emphasized that Nio would make “the most reasonable business decision” if substantial tariffs were imposed. This could include altering plans for the introduction of Nio’s new mid-range and future entry-level models in Europe.
On May 23, the largest NIO House in EuropeāNIO House | Amsterdam officially opened. NIO Founder, Chairman, and CEO William Li, NIO Co-Founder and President Qin Lihong, along with European user representatives and partners, witnessed this moment together with the local community. pic.twitter.com/giSyRis1W3
— NIO (@NIOGlobal) May 24, 2024
Nio’s expansion in the Netherlands aligns with a broader trend of Chinese electric vehicle manufacturers venturing into Europe, coinciding with the EU’s deliberations on raising tariffs on imported EVs.
However, European carmakers’ executives are apprehensive about the potential consequences of the EU’s tariff plans, arguing that stricter tariffs would do little to safeguard the industry.
In March, the European Commission initiated customs registration of Chinese EV imports, implying that these vehicles could face tariffs from that point forward if an ongoing investigation concludes that they are benefiting from unfair state subsidies.
See also:Ā Nio and Onvo Outline Ambitious Expansion Plans, Reveal New Family Electric SUV
Nio’s new Amsterdam showroom, situated at a prime location where an estimated 10,000 people pass daily, occupies the ground floor of a historic building that the company extensively renovated at considerable expense. With sweeping views over the city, the showroom features a venue for community events, conference rooms, a coffee bar, and an art gallery across its six floors.
While Nio is considered a luxury brand in China, it recently launched a mid-range Onvo line priced below Tesla’s Model Y and plans to introduce a cheaper entry-level Firefly brand by 2025.
See also:Ā Nioās Onvo Brand to Release New Model Annually, Aims for Family-Friendly Electric Vehicles
Li mentioned the possibility of establishing a European factory with a local partner if Nio can achieve sales growth to around 100,000 cars annually in Europe.
Despite increasing sales in the fiercely competitive Chinese market, Nio’s shares have declined by 48% year-to-date, as the company continues to operate at a loss.
In the Netherlands, EV adoption is rapidly increasing, with sales tripling from 43,000 in 2019 to 128,000 last year, accounting for 30% of all new car sales, with Tesla leading as the top-selling brand according to industry group BOVAG.
