Chinese electric vehicle maker NIO officially commenced sales of its ET7, EL7 and ET5 models, as well as the firm’s automotive operating system, in Europe on October 7. Along with these moves, the firm has successively launched ET7 deliveries and test driving services in Germany, the Netherlands, Denmark and Sweden.
In terms of its business model, NIO is exploring the European market through a vehicle subscription mode. Users can rent a new car for as short as one month, and they may customize the fixed lease period of 12 to 60 months. Users only need to spend money to rent a car, and NIO helps them undertake other tasks, such as buying insurance, maintenance, and even replacing batteries many years later. However, after receiving significant feedback showing a willingness to purchase vehicles, NIO Founder William Li announced on October 10 that the company would open up purchasing options in the four European countries.
NIO has clearly signaled that it plans to take root and thrive in the European market. For example, the firm plans to build 20 battery swapping stations in Europe by the end of 2022 and 120 by the end of 2023. Before 2025, NIO plans to build 1,000 battery swapping stations in markets outside China, most of which will be distributed in Europe.
In terms of its sales and services network, the NIO Center in Berlin, Germany will soon open, and eight other NIO centers in Hamburg, Frankfurt and Dusseldorf will be built and put into use one after another.
In addition to the energy supplement system and service network, NIO‘s expansion has not stopped. After this conference, Qin Lihong, Co-Founder and President of the firm, said that it will continue to set foot in Britain, Switzerland, Austria, Belgium and Luxembourg next year.
William Li discussed more goals in an interview with German media outlet Heise. For example, compared with Tesla, NIO will spend less time achieving profitability, and by 2030, NIO intends to rank among the top five global car companies. In order to achieve this goal, in addition to making a big push into the European market, NIO also plans to enter the US market before the end of 2025.
NIO now needs to win more markets with lower prices and larger mass production and sales. At present, monthly deliveries of NIO vehicles hover around 10,000 units. In September, NIO delivered 10,878 new cars, and in the third quarter, it delivered 31,607 new cars, an increase of 29.3% year-on-year, setting a record high for quarterly delivery. Up until now, NIO has delivered 249,504 new cars.
By contrast, Tesla completed the delivery of 83,000 units in the Chinese market alone in September. In the third quarter of 2022, Tesla produced more than 365,000 vehicles and delivered more than 343,000 vehicles worldwide.