Nio is going global with its revamped plans to enter the European market. Apparently, Coronavirus pandemic has hit the Chinese auto market badly and it is presently struggling from a great slump in sales. However, new energy vehicles, including hybrid and electric cars, have experienced a sales increase with an up to 19.3 for a year till July.
Leveraging this opportunity, Nio, a Chinese electric vehicle maker, is experiencing immense growth. Nio is a direct rival of Tesla, a leading car manufacturer in China. With its plans to go global and to launch a “battery-as-a-service” subscription product, Nio is all set to drive more sales in the upcoming years.
Willian Li, Founder and Chairman of Nio, said that the company might commence its manufacturing and sales operations in some countries across the globe that support electric cars, by the second half of 2021. The company will start with Europe, followed by other countries whose names were not explicitly mentioned by Li. The preparations are underway for the company’s revamping plan to enter the global marketplace by the year 2024.
Back in the years, Nio was on the verge of bankruptcy. Many of its leaders and founders in the USA and the UK left Nio along with many layoffs since its public listing on NYSE (New York Stock Exchange). However, the company managed to survive and is counted as the closest competitor to Tesla in the field of Electric car manufacturer. Initially, the company had roughly 600 employees that are cut down to merely 200 currently.
The COVID-19 pandemic has turned the table more towards this leading electric car manufacturer. The announcement of Nio in the times of Coronavirus, about the funding talks with Hefei city’s government, saved its life by turning up an investment of $1 billion from state-backed entities and other investors. Meanwhile, the deliveries of Nio vehicles topped 10,000 for the 2nd quarter of 2020 and hit a record of 3,740 in June. And, now the company announced shares up more than 240% so far this year.
Tesla is an American vehicle manufacturing company that specializes in solar, electric, and other integrated renewable energy solutions for businesses and homes. Tesla delivered over 90,000 vehicles globally, in the 2nd quarter alone. Half of the revenue ($3.09) came from America, where nearly 1/4th ($1.4 billion) came from China. The stock of Tesla climbed over 378% this year. After expanding its business in Shanghai, China, Tesla also has its eyes on Europe. And, Nio still has a long way to go in its global aspirations, if it wants to match the scale of Tesla.
Nio is keeping its hope high from its new battery product launch that can significantly elevate its position in the market. Li is expecting a positive response from brands like Audi, Tesla, BMW, and Benz, for its battery user base, only if they are willing to use it.