Nio Expands Globally: First Move Outside of China

Nio Expands into European Market with Norway Launch

Nio, a leading Chinese manufacturer of electric vehicles, has selected Norway as the initial market for its international expansion. This strategic decision positions the company within a region demonstrating significant enthusiasm for electric vehicle adoption.

ES8 and ET7 Models to be Available

Norwegian consumers will have access to a European specification of the ES8, Nio’s premier electric sport utility vehicle, starting in September of this year. Following this, the ET7 sedan is scheduled for release in Norway during 2022.

Strategic Rationale for Norway

William Li, founder of Nio, emphasized the long-term vision behind choosing Norway as its first overseas destination. He stated that Norway represents the most EV-supportive environment among European nations.

This connection dates back to 2018, when Norges Bank, Norway’s sovereign wealth fund, provided crucial financial backing during Nio’s initial public offering. A strategic partnership with the Norwegian EV Association was also established in the same year.

Competitive Landscape

Nio’s entry into the Norwegian market will see it competing with a diverse range of automakers. This includes other Chinese companies like XPeng, established global players such as Tesla, and prominent European manufacturers like Volkswagen and Audi.

Infrastructure Development Plans

Beyond vehicle sales, Nio is committed to establishing a comprehensive support network in Norway. This includes the opening of dedicated service centers and the deployment of both conventional vehicle charging stations and its innovative Nio Power Swap battery swapping facilities.

The company intends to construct four battery swapping stations in the Oslo area by the close of 2021. Further expansion is planned for 2022, with additional stations slated for the cities of Bergen, Trondheim, Stavanger, and Kristiansand.

Team Expansion

Currently, Nio’s Norwegian team comprises approximately 15 individuals. However, the company anticipates growing this team to around 50 employees by the end of 2021.

Recent Growth and Deliveries

Founded in 2014, Nio experienced a period of slower growth before gaining significant momentum in the latter half of 2020. The company reported delivering 20,060 vehicles in the first quarter, representing a substantial 422.7% increase compared to the same period last year.

First-quarter sales in 2021 also showed a 15.6% rise from the preceding fourth quarter. To date, Nio has delivered a total of 102,000 vehicles, resulting in a 489% increase in vehicle sales compared to the first quarter of 2019.

Financial Performance

Despite the sales growth, Nio continues to operate at a loss, although the difference between revenue and net loss is steadily decreasing.

Technological Innovations

The recent surge in sales is partially attributed to the January launch of the ET7, Nio’s flagship electric sedan. This model is the first to incorporate the company’s advanced Nio Autonomous Driving software.

Nio distinguishes itself through its charging approach, offering a battery-swap option alongside traditional plug-in charging stations. The company has already facilitated over 2.4 million battery swaps for its Chinese customers, with an average of 10,000 swaps occurring daily.

In August of last year, Nio also introduced its “battery-as-a-service” purchasing model, allowing customers to lease the battery separately from the vehicle itself.