NIO is reportedly planning to launch two new brands soon. One will produce cheaper EVs to rival Volkswagen in Europe. The Chinese brand is confident it will achieve its target of becoming profitable in 2023.
We’ve already shared that NIO has no plans to follow suit with Tesla’s price cuts, and the brand says Tesla can really influence prices in China. However, Der Spiegel recently completed a new interview with NIO CEO and founder William Li, who had more details to share.
Of course, the German publication asked Li about Tesla’s price cuts, knowing NIO doesn’t intend to follow the US EV maker’s lead. Again, Li said Tesla doesn’t get to dictate prices in China since its market share is less than 10%. Nonetheless, some Chinese automakers have already cut prices thanks to Tesla.
According to Electrek, the interviewer asked Li if he believes NIO will lose market share to Tesla. Li answered:
“No, our comparable models are already around $20,000 higher than Tesla prices, that’s not our core segment.”
The CEO added that it’s also important that cars hold their value, and these price cuts reduce the EVs’ residual value. He believes that such moves are simply bad for customers.
The NIO boss also talked about German luxury automakers, which he said he has loads of respect for, and the European EV market. He noted that Germany has much catching up to do with electric cars compared to China, especially with software and technology. He shared that NIO plans to fuel electric car growth in Europe by launching two new EV startup brands.
NIO will use one new brand to help cover the growing demand for small and inexpensive electric vehicles priced at less than 30,000 euros. This brand will be firmly aimed at much larger legacy automakers, such as Volkswagen.
Li claimed China has a 20% cost advantage over Europe and the US, which will help the situation. He didn’t elaborate much on the second new brand. Li shared via Electrek:
“As far as the price is concerned, we are attacking Volkswagen more than before.
The new brand will target European countries with mass-market cars, starting with France, Italy, and Spain.”
NIO recently started deliveries of its flagship EC7 electric SUV. The brand is ramping up battery swapping stations and has five upcoming models in the pipeline. It’s also touting its lead over rivals with regard to software and technology. The goal is to be profitable this year as previously guided.
