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Why NIO is confident in its entry into EU market

As the most innovative and globalized new car-making force in China, it is a natural consequence for NIO to enter the European market.

NIO Berlin’s European conference will soon be held in Berlin, Germany, at which NIO will announce the launch of products, full-system services and innovative business models in Germany, the Netherlands, Sweden and Denmark.

This time, NIO’s entire system has landed in four European countries. That is, NIO has brought not only products overseas, but also the whole system of services, so as to launch a comprehensive competition.

Let’s see why NIO is confident in its entry into the European market.

Success in China as basis

NIO has successfully built a fan base in China with its design, pricing and concierge-style service.

NIO has won the Chinese market with its stylish smart electric cars similar to Tesla, and has established its high-end brands and effectively competed with the global EV leader Tesla in China.

NIO has prepared and is now ready to test overseas markets.

Testing the water in Norway

In May 2021, NIO entered the Norwegian market. It is learned that in the past year, NIO has sold nearly 900 ES8s in Norway and built two swap stations in the country.

NIO’s sales in Norway has also proved the acceptance of NIO’s battery swap BaaS rental model. Since NIO started selling cars in Norway, about 95% of local users have chosen to rent batteries.

The result in Norway has given enough confidence to NIO. Qin Lihong, co-founder and president of NIO, said that its products are “overall ahead” of the electric vehicle competitors of automakers such as BMW, Mercedes-Benz and Volkswagen, and they are ready to compete in the above-mentioned competition in the local market of car companies.

Inspired to compete in Germany

From the founding, NIO has aimed to be a significant player in the global markets. NIO has research and development, design, manufacturing and offices in San Jose, Munich, London, Shanghai as well as eight other locations.

Germany is NIO’s first serious top targeting country where traditional local carmakers have strongholds. Tesla has become popular with great sales in Germany. This may provide NIO, as a top Tesla competitor in China, with the confidence in its chance in Germany as well.

William Li, founder and CEO of NIO said: “Entering Germany is the objective that we’re striving for. Interest is very high with many potential users there.”

NiO has recruited top German car designers for its EV design. Many believe that NIO’s models are very much in line with the tastes of European car buyers.

William Li said in an interview, “The main target group of NIO is the consumer group of mid-to-high-end car brands. They are still driving Audi, BMW, Mercedes or Porsche, and (maybe in the future) they will switch to NIO.”

At the upcoming NIO Berlin event, the flagship sedan ET7 will be officially introduced to European consumers at the event.

German media reporters have been impressed with ET7’s quality and performance. For example, Automobilewoche, a German professional car magazine, mentioned that NIO is considered Tesla’s most dangerous competitor.

NIO battery rental BaaS advantage

NIO’s battery swap service, BaaS is an important service provided by NIO for European users, reducing the initial cost of car ownership for users.

NIO plans to build 1,000 swap stations in markets outside China by 2025, most of which are located in Europe.

The NIO swap station can replace the battery for the user in only a few minutes, and is faster and more convenient than other existing charging methods.

Nio hopes to reduce costs for European users through battery leasing and battery swap services to gain a foothold in the growing European electric vehicle market.

Given that batteries cost about a third of the price of an electric car, NIO’s BaaS model will give NIO an edge over its competitors.