Europe is considered the toughest car market of all. The quality standards demanded by the drivers of the Old Continent are much higher than those of the rest of the world. German premium brands have always set the course in the industry, but China has learned and learned very quickly. NIO, XPeng, BYD, and the entire Geely Group are putting pressure on Europe with their launches. In the coming years the offer will change a lot and companies like NIO know where they can do more damage to traditional brands.
Since the last quarter of last year, NIO already has a physical and official structure in the Old Continent. The landing took place after a few discreet first steps in potentially attractive electricity markets such as Norway or the Netherlands. Although the first part of its strategy avoided the countries that were furthest behind in electrical sales, including Spain, the intention was to launch a sub-brand of cheap models. However, a new report claims that NIO has been able to turn the tide to offer cheap electric cars under the mainstream brand. Until now, the idea has always been to create a sub-brand of reasonably priced cars.
German media have been able to access this information during the celebration of the past Shanghai Motor Show. NIO, like all Chinese brands, attended the event with an outstanding display of strength. In an interview with its CEO, William Li, he revealed his main rival: “In terms of price, we are attacking Volkswagen harder than ever.” The Germans have always been the reference in Europe. It will not be easy to wrest the throne from them, but it is clear that determination is something that NIO and any other Chinese company will not lack.
To achieve this ambitious goal, they know that they must reduce the prices of their models. Currently, NIO offers prices between 49,900 and 73,900 euros in Europe, without counting the monthly rental of the battery, so you have to add between 169 and 289 additional euros. These rates are practically unaffordable for many drivers, which is why the Chinese want to offer more affordable and popular models. Recently, the two launches of this new approach have been confirmed: the NIO Firefly and NIO Alps models, under the umbrella of the main brand, not as sub-brands. Its arrival is scheduled for the next year.
At the moment, the information in this regard is quite brief, if not null. Although the deadlines seem short, the development and production capacity of the Chinese automobile industry should not be underestimated. Firefly and Alps will be offered in a price range close to or even less than 30,000 euros, without aid. This means that in countries like Spain, with the aid program of the MOVES III Plan, the final bill could be much lower. Li has recognized that these models will benefit from lower battery costs.
Little by little we will learn more details about these new attractively priced models that NIO will deploy in Europe. The Old Continent has managed to attract numerous foreign manufacturers that will complicate life for traditional manufacturers. However, its arrival will help drivers to have electric cars at a reasonable price and with high characteristics. The trade war will, in turn, allow brands such as Peugeot or Volkswagen to have to take a step forward to reduce bills if they do not want to lose their dominant position in the mobility market.