Frankfurt Nio is struggling with selling his cars in Germany and Europe. In the Federal Republic, the Chinese manufacturer of electric cars has been able to sell just under 500 cars since the start of sales last autumn. Now the new mid-size sedan ET5 – also intended as a competitor to the Tesla Model 3 – should ensure significantly better sales figures. New Nio branches in German inner cities and dozens of “swapping” stations for changing batteries should also contribute to this.
Nio has decided to go its own way when it comes to electric propulsion. The company uses removable batteries in its vehicles. The entire battery is replaced at exchange stations. This process takes a maximum of five minutes. In contrast, most electric cars currently sold take about half an hour to fully charge the battery.
“Driving the electric car should be fun and not a punishment,” said Nio President Lihong Qin at the opening of a new branch of the car manufacturer (“Nio House”) in Frankfurt.
Nio relies on “swapping”
The Nio concept with the complete replacement of the battery plays a key role here. This makes driving a Nio car more convenient and comfortable, according to Lihong Qin. But the Chinese automaker has to build its own infrastructure at a cost of millions.
So far there are only three of these “swapping” stations in Germany: in Berlin, near Augsburg and near Düsseldorf. By the end of the year there should be around 100 Nio exchange stations in Europe. In addition to Germany, the Chinese electric car manufacturer sells its vehicles in Europe, in Scandinavia and in the Netherlands.
Ralph Kranz, head of Germany at Nio, promised in Frankfurt that decisive progress would be made with the infrastructure this year. Around 40 “swapping” stations are to open in Germany by the end of the year. Nio will thus cover the most important long-distance transport axes. In the Chinese home market, Nio already operates around 1,300 exchange stations, and another 1,000 are to be added.
Nio officials believe that sales will soon go up much faster. According to data from the Federal Motor Transport Authority (KBA), just 14 NOO vehicles were registered in January and February. “After that, a lot more happened in March,” said Kranz, without giving specific figures.
Nio plans for a long time
Nio sees entering the German and European markets as a long-term commitment. Initial losses when setting up your own sales and charging network are consciously accepted. From business circles it is said that it could take a whole decade before Nio has established itself as a well-known and accepted brand in Europe.
Other Chinese manufacturers of electric vehicles such as BYD and Great Wall are also struggling after their market launch in Europe. “Chinese companies will only thrive in this region if they make significant improvements in cars, production and marketing,” said Felipe Munoz, an automotive analyst at market research firm Jato Dynamics.
>>Read here, how other Chinese automakers are faring in Europe
In China, too, the company Nio, which was founded in 2014, is far from leaving the red. Last year, the manufacturer of premium models posted a minus of around two billion euros. Speaking to Bloomberg, Chief Financial Officer Steven Feng said Nio will break even in 2024. This year, the company wants to double its worldwide sales to around 250,000 cars.
Nio secures state funding
In Germany and Europe, new models should ensure greater awareness among drivers. Since Friday of this week, Nio has been selling its third electric car model in Germany, the ET5 mid-range sedan. So far, the Chinese manufacturer had an SUV and a more expensive premium sedan on offer.
Nio sees the ET5 as a clear competitor to Tesla’s Model 3. The new Nio model is now offered at a slightly lower price than originally planned. In the cheapest variant, the net price without VAT, like the Model 3, is just below the 40,000 euro mark. This gives Nio buyers in Germany the maximum rate of state support of 4500 euros.
Nio branch in a prime location on Kurfürstendamm in Berlin: It’s not just about selling cars, but also about a lot of communication.
(Photo: IMAGO/Stefan Zeitz)
In the coming years, Nio not only wants to significantly expand the “swapping” network, but also wants to be represented with its own branches in the centers of the most important German cities. After Berlin, the car manufacturer opened its second German “Nio House” in Frankfurt this week. Düsseldorf will be added in June, and Hamburg at the end of the year. There are similar offices in Oslo and Rotterdam.
The Nio houses are not just for selling cars. The vehicle manufacturer sees its branches as a place of communication. Companies can book meeting rooms there, there is a café and a library. All of this together should significantly increase the level of awareness of the Nio brand. “The concept is an essential building block of our brand development,” said Christian Wiegand, manager for customer acquisition in Germany.
More: With self-confidence and exchangeable batteries – Nio starts model offensive in Europe