Nio faces European sales slump amid tariff challenges
The CEO of the Chinese brand Nio claims that the prices of models offered in Europe will have to approach the level of Porsche. He attributes this situation to the higher tariffs imposed by the EU on Chinese electric vehicles.
Import duties on Nio cars were increased in November, rising from the previous rate of 10 percent to as much as 31 percent. Nio's CEO, William Li, claims that this will impact prices in Europe.
Li explained at a recent conference that, because of the tariff in Europe, the selling price will align closely with that of a Porsche, significantly narrowing the market.
The situation is further complicated by the fact that Nio's sales in Europe are declining even without price adjustments. From January to October 2024, the brand sold 1,513 vehicles on the continent. This represents a 27 percent decrease compared to the same period last year.
The biggest decline, a staggering 72 percent, was observed in Germany, following the local government's decision to end the subsidy program for purchasing electric cars. Nio sees a chance to turn things around with its more affordable sub-brands, Onvo and Firefly, which are set to debut in Europe soon.
Their cars are expected to be significantly cheaper than Nio's standard offerings. The most popular Nio model in Europe, the SUV EL6, currently starts at a price of approximately CAD 96,000. This is before the price increases announced by the CEO.
