As a representative of domestic new energy vehicles, NIO can be considered one of the earliest new forces in China's automobile industry. The term "Wei Xiaoli" indirectly proves its status. Since its inception, NIO's "global vision" has been evident, starting with the world tour of its first model, the EP9 electric supercar.
Moreover, NIO has always adhered to the philosophy of "long-termism." In 2018. while other new forces were still entangled in the domestic market, NIO began preparing to enter Europe, taking the lead in setting up overseas operations. From today's perspective of the intense domestic competition, this step of long-termism by NIO was quite strategic. During the recent Munich Auto Show, we also discussed the collective appearance of Chinese brands in Munich and their sales in the European car market. Compared to other brands, NIO can be said to have taken the lead.
In Europe, NIO first entered the Norwegian market. The first model offered for sale and service in Norway was the NIO ES8. They also built the first NIO House and the first full-featured sales and service center. NIO has always adhered to the strategy of battery swapping and has maintained this approach in Norway by building the first battery swap station.
For its production and sales model in Norway, NIO directly transplanted its domestic model, adopting a direct sales and full life-cycle service ecosystem, which received positive market feedback.
Subsequently, seeing the potential, NIO began to expand to other European countries. As the birthplace of automobiles, Germany is undoubtedly a highly attractive place. NIO targeted this largest car market in Europe, establishing Germany as its second European base. They not only sold vehicles in Germany but also built a design center.
In October 2022. NIO founders William Li and Qin Lihong embarked on a 10-day, 2500-kilometer road trip in Germany. Following this, they held a launch event for the ET7. EL7. and ET5 models in Berlin, marking the beginning of their sales in Germany. The ET7 was even delivered in the same month.
Subsequently, NIO established an advanced technology research and development center in Cambridge, London, and a software R&D center in San Jose on the U.S. West Coast.
As of now, NIO has established 6 NIO Houses and 5 NIO Spaces in 5 European countries, along with two independent full-featured sales and service centers. Additionally, 26 battery swap stations have been built.
In terms of sales methods, NIO also adapted to local conditions in Europe by launching a subscription service, i.e., leasing. This initially limited their sales, but as the business developed, they introduced a "buyout" model, supporting various payment methods such as cash purchase, installment payments, and financial leasing.
So, how is NIO performing in the European market today? According to Eu-EVs data, NIO's sales in Europe reached 832 units in the first half of 2023. with an average monthly sales volume of about 137 units.
To provide a comparative perspective, let's look at the sales of another new force, XPeng. In July, the XPeng P7 sold only 103 units in Norway.
From this, it might seem that Chinese new energy vehicles are not very competitive abroad, but this is not the case. For example, BYD's performance is much stronger. As early as November 2022. BYD's sales in the European market reached 4.239 units, making it a dominant player.
This also confirms BYD's outstanding strength in the domestic market. It seems that whether domestically or abroad, having advanced technology is the key to success.
