On April 20th, Qin Lihong, co-founder and president of NIO, announced at the 2021 Shanghai Auto Show that NIO has set up the first market team to enter Europe. The the flagship store NIO House in Europe has been preparing, and the power station has been shipped to Europe, vehicles have completed the EU crash safety regulations certification and are “in a state where everything is ready.”
NIO has been planning to go abroad for a long time. As early as last July, NIO’s founder Li Bin announced to the public that NIO had established a special internal inter-departmental organization to be responsible for global market strategic planning. Entering Europe is also aimed at Europe’s vast new energy market.
According to EV Sales data, the European new energy vehicle market will account for 43.06% of the global market in 2020, China will account for approximately 41.27%, the United States will account for 10.12%, and Japan will account for 0.96%.
The market and policy dividends are certainly attractive, but does NIO have the strength? Anyway, the final conclusion still needs to be made. But for now, they are going to give it a try.
First of all, the financial report shows that in 2020, NIO’s car delivery volume increased by 112.6% year-on-year to more than 43,700 units, and the company’s revenue was approximately 16.257 billion Yuan, a year-on-year increase of 107%.
Secondly, based on NIO’s previous financing data, profit revenue, and the strategic investment received by the Hefei government, etc., it has provided sufficient financial support for NIO to go overseas.
Finally, in terms of technical reserves. From the perspective of the distribution of electric vehicle manufacturing costs in 2020, the costs are mainly concentrated in the body, chassis, interior, thermal management, batteries and others, of which battery modules account for 65%. On the one hand, NIO’s EIC system is developed and produced in Nanjing Advanced Manufacturing Technology Center (XPT), and the production scope includes battery PACK and EDS electric drive systems; on the other hand, NIO and CATL , Guotai Junan and Hubei Science Technology Investment Group invested 800 million yuan to establish Wuhan Weineng Battery Assets Co., Ltd., which strengthened its initiative in the supply chain.
With the positive factors of the European market and NIO’s own strength, it seems that NIO is ready to go aboard, and it is almost the last step. However, with the pandemic in Europe still spreading, fierce competition in the global new energy market, and difficulties in localization development, NIO has still a long and hard battle.