Nio's European ambitions hit by soaring tariffs and sales slump
The CEO of the Chinese brand Nio claims that the prices of models offered in Europe will need to reach the level of Porsche. According to him, the blame for this situation lies in the higher tariffs imposed by the EU on Chinese electric cars.
Import duties on Nio cars increased in November from the previous 10 per cent to as much as 31 per cent. The brand's CEO, William Li, claims that this will affect prices in Europe.
Li explained at a recent conference that, because of the European tariff, the selling price will align closely with that of a Porsche, significantly narrowing the market.
The situation is not helped by the fact that Nio's sales in Europe are declining even without price increases. From January to October 2024, the brand sold 1,513 vehicles in Europe. This is 27 per cent less than in the corresponding period last year.
The biggest decline, as much as 72 per cent, was noted in Germany after the local government decided to end the subsidy programme for purchasing electric cars. Nio sees an opportunity to improve the situation with its cheaper sub-brands - Onvo and Firefly, which will soon debut in Europe.
Their cars are expected to be noticeably cheaper than Nio's standard products. The most popular Nio model in Europe, the SUV EL6, currently starts at a price of approximately £54,000. This is before the price increases are announced by the CEO.
