Nio Inc's – ADR NIO ambitious plan to expand overseas could soon become a reality, and it could occur as early as this year.
What Happened: Nio is planning to start exporting to Europe in the second half of 2021, CEO William Li said during a web conference, cnEV Post reported, citing automotive media outlet Bitauto.com.
Following the European foray, the company is reportedly eyeing expansion into other international markets in 2022.
The proportion of electric vehicle sales has risen very quickly in Europe in 2020, and in Norway, EVs accounted for about 50% of total vehicle sales, Li reportedly said.
The European market will be almost a seamless transition, as the automotive regulations there are similar to China's, Li said.
User perception and the policy environment in Europe are EV-friendly, he reportedly said.
Li also sees a friendly geopolitical climate given the China-Europe Investment Agreement that is in place, the report said.
Why It's Important: The shift away from traditional ICE vehicles to EVs is happening at a rapid pace in Europe due to a regulatory environment that is favorable for green energy vehicles.
Nio's peer Xpeng Inc – ADR XPEV began exporting to Norway in December. In February, the company sent a second batch of 200 G3 SUVs to Norway.
International expansion is a logical next step for Nio, which is known for its technology, customer service and innovative offerings.
The Chinese EV startup is scheduled to report fourth-quarter results Monday after the close. More concrete details could be forthcoming in its earnings call that will follow the release.
NIO Price Action: Nio shares were up 4.86% at $48.97 at last check Monday.
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