CHINESE electric carmaker Nio plans to continue its European expansion despite uncertainty over whether the European Union will impose tariffs on Chinese EVs, the company’s founder William Li said on Thursday (May 23).
“Electric vehicles are very important for positive development of the environment, they should never be used as a political target,” Li told reporters as Nio opened its first showroom in Amsterdam.
He said that if the EU does impose substantial tariffs “We will take the most reasonable business decision.” That could include delaying or cancelling the introduction in Europe of the luxury carmaker’s new mid-range and future entry-level models, he said.
Nio’s Dutch expansion comes amid a broader move by Chinese electric vehicle makers into Europe just as the EU considers raising tariffs on imported EVs.
But the bosses of European carmakers are worried about consequences of the EU plans and say stiffer tariffs will do little to protect the industry.
In March, the European Commission started customs registration of Chinese EV imports, meaning they could be hit by tariffs from that point if an ongoing investigation concludes they are receiving unfair state subsidies.
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Shares in Europe’s car companies sold off on Wednesday after a Chinese government-linked auto expert said China should increase its tariffs on large petrol powered cars, which would hit German carmakers.
Nio’s new showroom is located in the heart of Amsterdam, on a corner where a bridge crosses one the city’s famous canals, a spot where an estimated 10,000 people pass daily.
The showroom is on the ground floor of an historic building which Nio has spent millions of euros renovating. On its six floors, which have sweeping views over the city, it has a venue for community events, conference rooms, a coffee bar and an art gallery.
While Nio is a luxury brand in China, this month it launched a mid-range Onvo line priced below Tesla’s Model Y, and plans a cheaper entry level Firefly brand for 2025.
Li said the company would consider building a European factory with a local partner if it is able to grow sales to around 100,000 cars in Europe annually.
The company’s shares are down 48 per cent in the year to date, as it remains loss making despite increasing sales amid fierce competition on the Chinese market.
EV use is rising sharply in the Netherlands, with sales tripling from 43,000 in 2019 to 128,000 last year, according to industry group BOVAG, or 30 per cent of all new car sales, with Tesla the top-selling brand. REUTERS