Nio, a specialist in electric vehicle battery swapping, plans to broaden its reach into seven additional European countries.
Chinese electric vehicle manufacturer Nio is expanding its presence in Europe, targeting countries where Tesla is a major competitor. The company plans to enter seven new markets in 2025 and 2026, including Austria, Belgium, Czech Republic, Hungary, Luxembourg, Poland, and Romania.
Nio's European expansion forms a core pillar of the company's global strategy, according to Thijs Meijling, head of NIO Europe Business, who stated that Europe is a region with tremendous potential for smart, user-centric mobility.
The sales ramp-up in Europe is occurring throughout 2025, with significant revenue impact expected by 2026. By the end of 2025, Nio plans to operate over 4,000 battery swap stations globally, with about 1,000 located outside China, mostly in Europe.
Nio's European offering will consist of cars from two distinct brands: Nio (premium smart electric vehicles) and Firefly (high-end compact electric vehicles). The company's current product offerings include electric sedans and SUVs under its flagship brand, with the ET series sedans and Onvo SUVs being key growth drivers.
In addition to the existing product lineup, Nio will introduce the Nio EL6 SUV, EL8 luxury six-seat SUV, the ET5 mid-size sedan, and the ET5 Touring in the European market. The battery swap technology, allowing quick battery replacements rather than traditional charging, remains a critical differentiator for Nio.
The company aims to leverage its unique battery-as-a-service (BaaS) model, including a network of battery swap stations, to compete against rivals such as Tesla. Nio's European expansion will involve cooperation with local distribution partners to ensure that users in the new markets benefit from the same seamless, premium experience already trusted by thousands of NIO users across Europe.
In the first quarter of 2023, Nio reported a net loss of RMB 6.75 billion (around $A1.45 billion) in its unaudited financial report, up 30.19% compared to the first quarter of 2024, but down slightly on the fourth quarter of 2024. The decrease in vehicle sales over the fourth quarter of 2024 was mainly attributable to a decrease in delivery volume, which was affected by seasonal factors.
Despite the net loss, year-over-year, revenue increased, but it declined nearly 40% on the previous quarter. In total, Nio delivered 42,094 cars in the first quarter, compared to 30,053 a year earlier and 72,689 in Q4. The increase in vehicle sales over the first quarter of 2024 was mainly due to an increase in delivery volume, partially offset by the lower average selling price as a result of changes in product mix.
Nio's European expansion ties into the company's broader strategy of multi-brand offerings and margin expansion projected for late 2025 and 2026, with Q3/Q4 2025 margins expected to reach 15-18%. The company has a $4.5 billion cash buffer to support growth and faces competition from Tesla’s aggressive pricing and Li Auto's stronger margins.
Joshua S. Hill, a journalist who has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012, prefers to get around on foot.
Technology will play a significant role in Nio's European expansion, with the company's battery swap technology serving as a key differentiator against rivals.
The European expansion is expected to contribute to Nio's global strategy in business finance, with the company projecting margin expansion and increased revenue from the new markets.
