NIO Responds to EU Anti-Subsidy Tax and Updates on European and UAE Expansion Plans

TapTechNews July 4th news, according to Caixin, in response to the rumor that 'due to additional taxation by the EU, the price of NIO's models sold in Europe may be adjusted', NIO Automobile stated, 'NIO is closely following and tracking the relevant progress and measures of the EU's anti-subsidy investigation. At this stage, NIO will maintain the pricing of its products on sale in the European market and will assess the marketing strategy according to the progress of the tariff policy. In Europe, we will continue to serve NIO users well. We believe that appropriate market competition is beneficial to users and hope to reach a solution with the EU before the final measures are implemented in November 2024.'

Today, the European Commission decided to levy a provisional anti-subsidy tax on imports of electric vehicles from China. The weighted average tariff for cooperative but unselected Chinese producers will be 20.8%, and the tariff for non-cooperative companies is 37.6%. This provisional tariff will take effect on July 5, 2024, and last for up to four months.

NIO officially launched its overseas expansion in Europe in May 2021, with 'the first stop' in Norway and began to provide products and services to the local market. By August 2022, NIO held the NIO Berlin NIO European launch event in the German capital Berlin, announcing the provision of services in the markets of Germany, the Netherlands, Denmark, and Sweden, and began to fully enter the European market.

TapTechNews noted that at the 2024 Q1 earnings conference call, NIO CEO Li Bin said that the EU's anti-subsidy investigation on Chinese electric vehicles may announce the preliminary results next week. We think that increasing tariffs is a very wrong direction. Li Bin emphasized that NIO's sales volume in Europe accounts for a relatively low proportion in the overall sales volume. In the short term, it has little impact on NIO's operation. In the long term, NIO will formulate a reasonable strategy according to the adjustment of the tariff policy. In addition, later this year, NIO will also begin to provide products and services in the UAE market.