NIO Expands Its Foothold in Europe With Four New Markets but Won't Sell Any Vehicles There

NIO opened its first Power Swap Station in Germany at the end of September and now announced expanding operations in the country. The Berlin event on Friday marked the official start of its expansion in Europe, with the Netherlands, Denmark, and Sweden to follow. Next up, the brand will launch in the UK, Switzerland, Austria, Belgium, and Luxembourg.

The NIO event left many people surprised after the Chinese company detailed the sales strategy. Unlike Norway, where it sells EVs directly, the new markets would only see a subscription model. This prevents local customers from buying and owning NIO EVs. Instead, they would only be able to lease them. For instance, the flagship ET7 can be leased for about 1,200 euros ($1,170) per month in Germany.

We’re not sure how this would play for the Chinese brand long-term, but we’re sure they did their homework. They defended their decision during the presentation, saying that people in Germany are already accustomed to renting or leasing their vehicles. Many companies already rent their employees’ vehicles from car rental companies, so this might work.

The subscription periods vary from one to 60 months, and there will also be more flexible plans for customers in the four new markets. In addition to using the vehicles, subscription customers will have access to NIO’s services and use NIO Houses, among other things. The company said that the Berlin NIO House should open soon, while new facilities in Hamburg, Frankfurt, Düsseldorf, Amsterdam, Rotterdam, Copenhagen, Stockholm, and Gothenburg would quickly follow.

The NIO Subscription plans pack everything a user might need for a worry-free experience. This includes comprehensive insurance, maintenance, winter tires, a courtesy car, battery swapping, and the flexibility to upgrade battery services.

“Our compelling products, game-changing charging, and battery swapping services, alongside truly innovative and flexible subscription models, will change the landscape of EVs,” said William Li, founder, chairman, and CEO of NIO. “Our commitment to the region marks the start of NIO’s next chapter in our global development.”

NIO plans to start deliveries of the flagship ET7 in Germany and the Netherlands on October 16, and Sweden and Denmark will follow on November 15. At the end of January 2023, the NIO EL7 will also become available in all four markets. Finally, the junior model ET5 will begin its career at the end of March 2023.

If you wonder what NIO EL7 is, well, it’s the same NIO ES7, but with the name slightly changed to avoid further litigations with Audi in Germany. If you recall, Audi filed a lawsuit against NIO, arguing that NIO’s ES naming system for its SUVs sounded too similar to its S-badged performance series. We expect the ES8, which NIO currently sells in Norway, to be renamed EL8 after its upgrade next year.

All three vehicles cater to premium car buyers in the wealthiest countries in Europe. NIO also plans to bring more affordable models as it expands in Europe. For that, the Chinese company has announced the intention to launch a new mass-market brand. The yet-unnamed brand would launch in China in 2024 and in Europe a few months later.

NIO’s new brand will focus on smaller cars, naturally targeting markets where these vehicles are extremely popular. These markets include France, Italy, and Spain, but we assume that any lower-income European country would fit the bill. NIO sees this brand as Volkswagen to Audi or Toyota to Lexus.

All NIO vehicles are built to accept standardized swappable batteries, a move that has proved successful in Norway. According to Automotive News, 95 percent of owners in Norway lease the battery with the option of upgrading to a larger size when more range is needed. Although NIO only operates six Power Swap stations in Europe (three in Norway and three in Germany), the company aims to open 20 by the end of the year throughout Europe. This should rise to 120 in 2023.