Can China’s NIO Break Into Europe’s Market? ET9 and Firefly Face Major Tariff Challenges

Chinese electric vehicle manufacturer NIO has officially announced the launch of its highest-priced electric sedan, the ET9, alongside its lower-priced sub-brand, Firefly, as part of its ambitious plan to expand in Europe. However, according to a Bloomberg report, the company faces potential hurdles due to tariffs imposed by the European Union (EU).

At its annual customer event in Guangzhou, China, NIO unveiled the Firefly brand, which will enter the European market in the first half of next year. Firefly aims to compete with brands like BMW’s MINI and Mercedes-Benz’s Smart. The pre-sale price for Firefly starts at 148,800 yuan (approximately $20,000), and utilizing battery rental can reduce the price to below 100,000 yuan (approx.$13,700).

The creation of Firefly is well-known as part of NIO’s strategy to increase its market share in Europe. Simultaneously, NIO officially launched the ET9 to target the European high-end automotive market. The ET9, priced at 788,000 yuan ($108,000), competes with models like the Porsche Panamera series and the Mercedes-Benz S-Class, as the company emphasizes.

The ET9’s 100 kWh battery can travel 650 kilometers (404 miles) on a single charge and can achieve a range of 225 kilometers (140 miles) in just five minutes using a high-voltage charging system. NIO’s intelligent driving system, powered by its developed chip, includes features such as 35 speakers and expanded legroom. Deliveries are expected to begin as early as March next year.

While NIO is aggressively targeting both the budget and premium markets to secure its share in Europe, it faces obstacles due to the EU’s additional countervailing duties. During a media briefing, NIO’s CEO, William Li, mentioned that the absence of tariffs would have provided better opportunities for the company in the European market.

Despite facing challenges, Li expressed confidence in their products and acknowledged that the increased tariffs would inevitably affect European market size and sales. NIO is responding by accelerating battery swap station construction across Europe and actively seeking local partners to expand its infrastructure.