Chinese automaker Nio is reportedly planning to employ a dealership sales model in the European automotive industry, Reuters reports, citing people familiar with the matter.
It is apparently part of the company’s efforts to boost electric vehicle sales in the region.
Report highlights
Nio currently employs a direct-to-customer sales model since it entered the Norwegian market in 2021 and Germany, Sweden, Denmark, and the Netherlands in October 2022.
This sales approach enables customers to purchase NIO cars from official stores or through the company’s online configurator.
Now, it seems that the company has grown some interest in various car dealerships across the European market, according to unnamed sources. It apparently occurred after Nio’s President disclosed in September that its European sales were falling short of the set guidance.
One of the sources further stated that Nio is considering tapping into dealerships for its NIO-branded EVs in the region. Interestingly, it also includes the mystery project “Firefly,” an upcoming cheaper brand for the Europen market by 2025.
Nio has yet to confirm the report.
“We will choose the model that best suits the local market and the brand’s development needs.”
Nio
What’s the big deal?
Electrek indicated that “car dealerships” generally have a bad reputation for making car purchases worse.
Dealerships operate with sales staff who may receive incentives for pushing a certain unit to a buyer. However, these sales staff are “rarely as familiar with the vehicles they sell” compared to those brand-owned stores.
This lack of knowledge can compromise customers’ shopping experience and may even cause false information about the vehicle.
That said, the dealership sales model may not be ideal for Nio’s European expansion, considering its position as a new player in the region.
See Also:
- Nio hits 30 millionth battery swapping service mark in China
- NIO launches the new EC6 EV with cutting-edge features
- NIO to officially launch the new EC6 on September 15
- NIO enjoyed 81% YoY sales growth to 19,329 EVs in August 2023
- NIO to equip its EVs with 150 kWh solid-state batteries
Nio currently operates 6 NIO Houses in Europe that allow customers to check and test drive its five available models there, including the new ET5 sedan.
It would be interesting to see how Nio would proceed with its sales strategy in the European market. Hopefully, it will choose the most ideal approach to improve its sales and delivery figures.
