NIO Explores Dealer Network Expansion To Drive European EV Sales: Report

NIO Inc. NIO is reportedly contemplating the establishment of a dealer network in Europe as part of its strategy to accelerate sales growth despite the looming possibility of tariffs on Chinese EVs in the region.

Dealerships are under consideration for both Nio-branded cars in Europe and the "Firefly" project, an upcoming more budget-friendly electric vehicle brand set to be introduced in Europe by the company in 2025, according to a news report by Reuters. 

The reason to use dealers is to ease cash pressure on Nio, which is prioritizing its expenditure on research and battery swapping stations in China, the report read. 

Nio launched in Norway in 2021. The company then entered Germany, the Netherlands, Sweden, and Denmark in October last year, allowing customers to buy directly from its stores or online or to lease the cars for as short as a month, added the report.

Now, the company has initiated evaluations of potential dealers in critical European markets. 

This action follows the NIO president's recent statement, where he expressed disappointment with the sales performance in Europe, indicating that expectations were not being met, Reuters said.

According to LinkedIn posts, the report read that Nio has been hiring employees in France, Italy, Hungary, Switzerland, and Austria.

"We will choose the model that best suits the local market and the brand's development needs," Nio said in an emailed statement to Reuters.

Price Action: NIO shares are trading lower by 1.06% to $8.44 premarket on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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