Chinese electric vehicle manufacturer Nio plans to operate in five European countries next year as part of a brand development strategy aimed at environmentally conscious drivers. Nio has recently opened a showroom in Norway called Nio House as the first step towards expansion in the region.
Li Bin, founder and CEO of Nio, said, “One in four people who test-drive Nio vehicles in Norway bought the vehicle. This is a higher rate than in China. “By the end of 2022, the Nio brand will be present in at least five more European markets outside Norway.”
Chinese automakers are struggling to strengthen brand awareness overseas. Nio takes charge of charging stations like Tesla. While major global automakers continue to hold their positions in electric vehicles, Nio is trying to get a slice of the luxury car market.
Electric car sales are increasing rapidly in Europe. According to the European Automobile Manufacturers Association, electric car sales in the July-September quarter more than doubled compared to the same period last year, accounting for 18 percent of total new car sales in 12,7 major European markets. The number of electric vehicles sold in this period increased by 57 percent compared to the previous year and reached 303 units.
Chinese company to establish a new factory in Shanghai
According to the last three-month data in September, Nio delivered the keys of 24 cars, doubling the sales of the previous year, breaking its own record. The company aims to sell approximately 439 thousand cars in the October-December period.
Nio plans to expand its production capacity to meet the growing demand for electric cars. The company is building a new factory in Hefei, 470 kilometers west of Shanghai. Nio announced this month that it will begin equipment installation at the factory and will begin full production in the third quarter of 2022.
Investors continue to place high value on Nio company, relying on its future growth potential. With a market cap of $66,6 billion, Nio is already worth more than 306 percent than the $20 billion Toyota Motor.
China is promoting the development of domestic electric car manufacturers. In line with this policy, Shanghai Municipality is waiving license plate fees for new energy vehicles that refer to electric, hybrid and fuel cell cars.
Beijing-backed Nio and other Chinese electric vehicle startups are expanding worldwide in their innovative efforts in the current competitive environment in an industry hitherto driven by international gasoline automakers.
Source: China International Radio