Faced with a cut-throat domestic market, many Chinese automakers have looked to grow their overseas sales in markets like Europe, Latin America and Southeast Asia to safeguard their future.
But on Tuesday, Nio CEO William Li gave a candid assessment of the challenges it had faced, saying its progress so far "has diverged somewhat from our earliest expectations".
"We underestimated the difficulty of expanding sales and service networks in Europe," Li told a group of journalists at an event before Auto Shanghai, the world's largest carmaking industry show.
In China, he said, it was easy to open up 100 shops in a single month -- in Europe that was very hard to do, and the cost was much higher.
Nio said Tuesday that Firefly, a brand of small cars designed for city living, would be released in Europe sometime in Q3.
It was initially scheduled to be launched in the first half of 2025.
Battery swap network progress in Europe had also fallen short of expectations, Li said.
As well as logistical hurdles, the firm has also been affected by geopolitics.
Brussels imposed extra tariffs on Chinese-made electric cars last year after an anti-subsidy investigation concluded Beijing's state support was unfairly undercutting European automakers.
"Under the current tariff conditions, a vehicle like the Firefly will of course see some impact on its price competitiveness," president Qin Lihong said.
Despite the challenges, Li said Nio remains committed to the European market.
The company will work to develop local partnership records, and will announce some new ones at Auto Shanghai.
"We believe that Europe requires a particularly long-term strategy and patience," Li said.
"So I don't expect a sudden surge in vehicle sales -- that's just not realistic."
Aramco and BYD unveil car technology alliance
Shanghai (AFP) April 22, 2025 -
Saudi Aramco and the Chinese electric vehicle giant BYD announced Monday an agreement to work together on what they called new-energy vehicle technologies.
The Saudi oil giant is already a partner with Renault of France and the Chinese automaker Geely in a joint venture to produce thermal engines.
Its subsidiary Saudi Aramco Technologies Company is now teaming up with the Chinese EV and hybrid vehicle giant, although terms of the accord were not specified.
In a joint statement the companies said the deal aimed to "foster the development of innovative technologies that enhance efficiency and environmental performance".
The statement was issued ahead of Auto Shanghai, the world's largest industry show of its kind, which opens Wednesday.
Saudi Aramco, the world's largest producer of oil, "is exploring a number of ways to potentially optimize transport efficiency, from innovative lower-carbon fuels to advanced powertrain concepts", said Ali A. Al-Meshari, its senior vice president of Technology Oversight and Coordination.
Luo Hongbin, BYD senior vice president, said "SATC and our cutting-edge R&D capabilities in new energy vehicles will break the boundaries of geography and mindset to incubate solutions that combine highly-efficient performance with a lower carbon footprint".
Saudi Arabia is working to diversify its economy, which is dependent on oil export revenue, and wants to set up 5,000 EV charging stations by 2030.
The Saudi sovereign wealth fund holds a 60 percent stake in the California luxury EV maker Lucid and has signed an agreement with Hyundai of South Korea to build an electric and thermal vehicle factory in Saudi Arabia.
A Saudi EV brand called CEER, launched in 2022, is expected to begin production this year.
Last year BYD opened a showroom in Riyadh to market electric cars at affordable prices in a country where gasoline is cheap and EV charging stations are rare.
Tesla opened its first showrooms in Saudi Arabia on April 10.
Auto Shanghai showcases new EV era despite tariff speedbumps
Shanghai (AFP) April 23, 2025 -
The world's largest auto expo opened its doors Wednesday in Shanghai, showcasing the new electric world order even as mounting trade barriers risk dampening China's global ambitions.
With nearly 1,000 exhibitors present, foreign carmakers are raring to show they can keep pace with the ultra-competitive Chinese firms that dominate the sector's electric frontier.
Vying to shore up sliding sales in a market they used to dominate, German companies on Wednesday pitched themselves as building cars "in China for China".
Volkswagen, the largest foreign group operating in the country, unveiled a series of new electric vehicles and a driver assistance system developed especially for the Chinese digital ecosystem.
The group says it will launch more than 20 electric and hybrid models for the country by 2027.
At the BMW booth, a foreign executive conducted a conversation in Mandarin with an AI assistant, before CEO Oliver Zipse rolled onstage in a futuristic white SUV from the upcoming "Neue Klasse" series.
A separate version specifically tailored for China will be launched next year.
"At BMW we will continue to advocate for... open markets," Zipse said, adding that "global challenges require global cooperation" in an apparent reference to the current trade turmoil set in motion by the Trump administration.
- Cutthroat competition -
Foreign brands are up against cutthroat competition from dozens of local rivals.
Beijing's historic backing of EV and hybrid development has seen the domestic market flourish, with analysts considering it younger-leaning and more open to novelty.
Auto Shanghai, which runs until May 2, has seen a flurry of launches.
Huge crowds gathered at domestic champion BYD's booth as it unveiled five new Ocean series cars, as well as a luxury SUV under its sub-brand Yangwang, and a concept sports car under another, Denza.
BYD has enjoyed a giddy few months of surging sales after annual revenue surged in 2024, eclipsing rival US titan Tesla -- which is not present at the show.
Others exhibiting range from state-owned behemoths, start-ups such as Nio and Xpeng, tech giants with skin in the game such as Huawei, and consumer electronics-turned-car company Xiaomi.
The domestic contest has pushed Chinese companies to develop faster and fostered technological innovation.
On Wednesday, Nio CEO William Li presented the flagship ET9, powered by two proprietary smart driving chips.
Xpeng unveiled AI battery technology it said would deliver a 420-kilometre (260-mile) range in just 10 minutes, the latest in a slew of recent fast charging announcements from BYD and battery giant CATL.
However, the effect of the crowded market on individual companies can be harsh -- some start-ups have already gone bust, while brands including SAIC Motor, BYD and Geely are engaged in a brutal price war.
"The sector is very competitive and not everyone here will survive," Xpeng's president Brian Gu told AFP on Wednesday.
Many Chinese automakers have looked to grow their overseas sales in markets such as Europe, Latin America and Southeast Asia to safeguard their future.
Last year, China exported 6.4 million passenger vehicles, more than 50 percent above second-ranked Japan, according to consultancy AlixPartners.
There are still potential roadblocks though.
Nio on Tuesday said it had underestimated the difficulties of expanding into Europe, blaming logistical hurdles and noting tariffs would have an impact on price competitiveness.
- Tricky tariff terrain -
Tariffs will also be on the minds of foreign companies who make cars in China themselves, such as the United States' General Motors and Ford.
Beijing and Washington are at an impasse after President Donald Trump's tariff policy triggered a tit-for-tat escalation between the two superpowers, leading to staggeringly high reciprocal levies.
Since last year, Chinese carmakers have also faced extra duties from the European Union.
However, exports to Russia and the Middle East have helped cushion these and other tariff impacts, AlixPartners said Tuesday.
And although the levies will increase the cost of China's vehicle component exports by about 24 percent, "this represents only about 3.8 percent of China's total auto industry production value", it noted.
Other speedbumps are internal.
China's post-pandemic recovery has wobbled, with low domestic consumption a persistent issue, while concerns have been raised about overcapacity.
Related Links
Car Technology at SpaceMart.com
| Subscribe Free To Our Daily Newsletters |
| Subscribe Free To Our Daily Newsletters |
