Nio, Inc. NIO launched its ES8 all-electric SUV in Norway Thursday and also commenced delivery of the vehicle. The company said its first-ever Nio House will open in Oslo Friday.
As the U.S.-listed Chinese EV startup takes its first steps into Norway, supposedly the starting point for its ambitious overseas expansion plans, it may do well to watch out for competition in the crowded Norwegian EV market.
Why Norway Is An EV Haven: EV penetration in Norway is the highest in the world. The percentage share of EV vehicles to total vehicles rose to a record 72% in August, Electrek reported.
In comparison, EV penetration was 12% of trailing three-month vehicle sales in China, followed by 10% in Europe and 3% in the U.S., according to Piper Sandler analyst Alexander Potter.
Additionally, the Norwegian government incentivizes EV purchases. Among the many concessions are avoidance of purchase and import taxes and a 25% value-added tax. EV users also benefit from at least 50% saving on toll charges.
As an added incentive, the country boasts good EV charging infrastructure thanks to government and private initiatives.
Major Players In Norwegian EV Market: Volkswagen AG VWAGY-owned luxury brand Audi's e-tron was the bestselling EV brand in Norway in 2020. About 9,200 units were sold in 2020. Tesla, Inc. TSLA's Model 3 stood second, with 7,770 units deliveries during the year. Volkswagen's ID.3 saw sales of 7,754 units.
With Tesla beginning to sell Model Y vehicles in Norway in late August, the EV giant has clawed back and taken the lead position in Norway's EV market. Tesla sold 2,083 vehicles in August, giving it a 12.7% share of the market in August, according to new registration data.
The Volkswagen brand had a 12.3% share by virtue of it delivering 2,028 vehicles in August. If Audi sales were added, Volkswagen's sales stood at 3,353 vehicles and its share would have been 20.4%.
Toyota Motor Corporation TM sold 1,208 vehicles and took a 7.4% share. Closely following the Japanese auto giant were Ford Motor Company F and Hyundai Motor Company HYMTF, with market shares of 6.9% and 6.3%, respectively.
Related Link: Nio's Upcoming ET7 Sedan Model Achieves Drag Coefficient Equivalent To Tesla's Model S Plaid: What You Need to Know
Chinese Make A Beeline To Norway: Chinese automaker Geely Automobile Holdings Limited GELYF-owned Volvo had a 4.2% market share in Norway in August.
Sensing the opportunity in Norway, China's XPeng Inc. XPEV and BYD Company Limited BYDDF marked their entries into Norway ahead of Nio.
XPeng set foot in Norway late last year and it now sells its G3 SUVs as well as P7 sedans in the country. Warren Buffett-backed BYD began delivering its Tang SUVs in the country last month.
Taking cognizance of the intense competition, Nio's CEO William Lee reportedly told Reuters he foresees a long road to success in a mature market where it is "very difficult to be successful."
Chinese carmakers may need up to a decade to "gain a firm foothold" in Europe, he added.
NIO Price Action: Nio shares gained 1.41% in Thursday's session, closing at $35.63.
Related Link: Nio Unveils Longer Range, Cheaper 75-kWh Hybrid Batteries: What You Need to Know
The Nio ES8. Courtesy photo.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
