First deliveries in 2021
Electric vehicles are highly tax-efficient in Norway, making them extremely popular in the country. By March 2021, electric vehicles accounted for 56% of all new vehicle registrations in Norway. It's the most dynamic electric vehicle market in Europe.
Nio will open its first processing and delivery center in Oslo in September, followed by four more next year in Bergen, Stavanger, Trondheim and Kristansand. The carmaker said its after-sales service network would be nationwide by 2022, and would also offer a vehicle collection and delivery service.
"The decision to make Norway our first overseas destination is backed by long-term thinking," said Nio founder and CEO William Li. "Norway is the most EV-friendly country in the world. At the same time, its commitment to nature and innovation resonates with Nio's vision in many ways."
William Li
A strategic partnership with The Norwegian Electric Vehicle Association
Nio has formed a strategic partnership with The Norwegian Electric Vehicle Association, which has been campaigning for electric vehicles for 25 years.
"The electric vehicle market is growing rapidly, and it's really good to see more and more electric car brands establishing themselves in Norway," said Christina Bu, Secretary General of the Norwegian EV Association.
Christina Bu
Nio follows in the footsteps of Xiopeng Motors (XPeng) in Norway. The rival Chinese manufacturer began exporting its G3i electric SUV to Norway last September.
Nio claims to be Tesla's rival
China's Nio Inc. is a self-proclaimed rival to Tesla Inc. and wants to make its mark in Europe. It's obvious: the continent is becoming the world's biggest market for electric cars.
Often referred to as "China's Tesla", the electric vehicle manufacturer has succeeded in selling a few electric SUVs in the fast-growing Chinese market.
At NIO Day 2020 in Chengdu, NIO unveiled its next electric vehicle: the NIO ET7. The NIO ET7 aims to compete with Tesla on its most premium models, promising battery prowess and a range of 1,000 km.
A fragile business model
Despite support measures and financial backing in China, the company was unable to manufacture its own cars or generate profits there. In the spring of 2020, Nio was bailed out by Beijing. Given that it continued to spend crazy amounts of money and couldn't afford to pay its workers on time, Nio entered into an investment agreement with the government of Anhui province, which invested 7 billion yuan ($1.08 billion) in cash in the company. A group of related strategic investors holds just over 24% of the company's main entity, NIO China.
Since the company was founded, it has never been profitable. The reason is simple. The start-up faces an existential problem: Nio does not manufacture its own cars. It has a manufacturing agreement with Jianghuai Automobile Group Co. or JAC, which is due to expire this month. Under this agreement, Nio pays per vehicle and compensates the state-owned automaker for its operating losses.
Meanwhile, even though Nio has reversed course on its plans to build its own factory, it has not been able to reduce the cost of bringing vehicles to market. As of April 30, the company had delivered a total of 102,803 vehicles over the past three years. But this has not translated into economies of scale.
The European market: an Eldorado for Chinese manufacturers?
Many Chinese electric car brands have already set foot in Europe.
MG Motor
It is an English sports car manufacturer founded in 1924. Since 2006, the brand has belonged to SAIC Motor Europe, a subsidiary of the Chinese group Shanghai Automotive Industry Corporation (SAIC).
MG Motor has entered France in 2020 with its 100% electric SUV, the MG ZS EV.
Aiways
Aiways is a Chinese automotive brand founded in 2017 and based in China.
The Aiways U5 is a 100% electric-powered SUV, unveiled at the Geneva Motor Show in March 2019. It is the first production vehicle from the Chinese brand Aiways. The U5 is equipped with a 140 kW (190 hp) electric motor and 315 N m of torque, combined with a battery providing a theoretical maximum range of 560 km.
Other Chinese electric vehicle brands will soon be setting up in France, adding to the existing range of electric cars.
