Nio's Li Talks China's EV Market Potential, Competitive Advantage At Beijing Event

Chinese electric vehicle stocks are going through turbulent times amid worries over stretched valuations and fundamental soundness.

Yet there is an unequivocal opinion on Street that these companies have long-term growth ahead of them due to the prospects presented by the lucrative Chinese new energy vehicle, or NEV, market.

The views were echoed by William Li, the founder, chairman and CEO of Nio Inc – ADR NIO, at the 13th Golden Kirin Forum on Thursday.

Li On Chinese EV Market Estimates: China's goal of achieving 20% EV penetration by 2025 is a conservative estimate, Li said in the  speech, as reported by CNTech Post.

This goal was unveiled by China's State Council in its "2035 New Energy Development Plan" in November.

"This penetration rate is expected to be around 5% or 6% this year, which is still some distance from 20%. But if we look at this trend now, I think there should be no problem to accomplish this target," Li reportedly said.

"I myself think this figure is actually a little bit conservative."

Apart from the obvious benefits of carbon footprint reduction and mitigating environmental impact, NEVs also have a sales proposition in being intelligent vehicles, especially with autonomous driver assistance systems, Nio's CEO said.

Related Link: BofA's Takeaways On Nio's 2021 Plans

The Chinese EV industry has evolved from selling to corporate and fleet customers to consumers, and the rise in consumer demand is healthy for the industry, he said. 

Click here to check out Benzinga's EV Hub for the latest electric vehicles news.

China's Strong EV Supply Chain: The Chinese automotive industry's strength can be gauged by the fact that international auto giants such as Tesla Inc TSLA, Volkswagen A G Unsponsored Represent 1 10th Sh ADR VWAGY and Toyota Motor Corp TM are looking to China for their supply needs, Li reportedly said.

Chinese companies stand to gain from the nation's proficiency in internet technology, artificial intelligence technology, big data and basic communication technology, which are the founding pillars of autonomous driving, he said. 

NIO Price Action: At last check, Nio shares were trading 2.39% higher Thursday at $45.04. 

Related Link: Nio Reportedly Working On In-House Self-Driving Chips

Courtesy photo.