NIO is among the Chinese electric automakers affected by the ongoing subsidy probe in Europe. Despite this, it remains committed to expanding in the European Union as the probe does not “make sense,” according to the Chief Executive.
EU investigating potential unfair competition from government subsidies
As EV-a2z has been reporting, Brussels is currently investigating whether Chinese electric automakers benefit from unfair subsidies to reduce the prices of their offerings.
If proven, the EU may impose higher import tariffs to offset the advantages Chinese players gain from suspected government subsidies.
In a similar measure, the US government recently imposed a major tariff hike from the previous 25% to 100% on Chinese-made electric vehicles in 2024. The tariff changes seek to curb the surge of Chinese EVs in the US market.
Despite these challenges, CEO William Li reiterated NIO’s plans to expand in the European market. According to the Financial Times, NIO mulls partnering with a local OEM to develop a European factory after establishing sales volume in the bloc.
“In Europe, establishing a manufacturing facility will be a natural result. For us, the baseline is 100,000 units a year. We are very confident, although we also know that in Europe we do have a long way to go.”
NIO CEO William Li said following the first showroom launch in Amsterdam
NIO joins chorus of criticism against the probe
The NIO boss, often dubbed China’s Elon Musk, emphasized that the Chinese government’s subsidies are also open to foreign electric automakers. He even defined China as “the most open market worldwide.”
Even more, CEO Li highlighted the company’s contradiction to the EU and US measures against free trade.
“We are from China but we are also a global company. We are against such an approach where the tariffs are used to stop the flow and trade of electric vehicles.
I think that many of the accusations by the European Commission do not make sense.”
NIO CEO William Li said following the first showroom launch in Amsterdam
NIO unfazed by EU’s ongoing investigation
NIO reiterated the significance of electric vehicles for a greener environment to discourage foreign markets from imposing such investigations and tariff hikes.
“Electric vehicles are very important for positive development of the environment, they should never be used as a political target.”
NIO CEO William Li
Despite the potential tariff hike in the EU, NIO pushed through with the launch of its new showroom in the heart of Amsterdam. It is located on the ground floor of a historic building, which the Chinese automaker has invested millions of euros in renovating.
NIO shares fell 48% this year to date amid fiercer competition in the Chinese market.
