© Reuters. FILE PHOTO: William Lee, founder and CEO of Chinese electric car maker Nio, unveils Nio’s ET7 sedan at a product launch event in Chengdu, Sichuan Province, China on January 9, 2021. REUTERS/Yilei Sun/File Photo
SHANGHAI (Reuters) – The founder of Chinese electric car maker Nio (NYSE: NYSE) said China’s electric car makers should prepare for the possibility that foreign governments will face protectionism as they exploit cost advantages to expand exports.
William Lee told reporters on the sidelines of the Shanghai Autoshow show that he estimates his company and peers making electric vehicles in China have a cost advantage of up to 20% over competitors like Tesla (NASDAQ:) thanks to China’s grip on the supply chain and raw materials. Material.
Nio and Chinese rivals such as Xpeng (NYSE:) and BYD have set their sights on winning more customers abroad, especially in Europe, where demand in China is weakening. Renault (EPA:), Tesla and BMW are among the foreign brands that make EVs in China and sell them abroad.
“After exports grow and grow, market protectionism will definitely happen. This is not a good thing for global sustainable development, but we must respect that every country has considerations to protect domestic industries. This is the reality we must face,” he said.
Nio plans to launch new products designed specifically for European users, who he said are keen on compact cars. He added that they also review plans to enter the United States on a quarterly basis.
Reuters reported in February that Nio plans to build a factory to produce low-cost electric cars under a new brand for export to Europe. Lee declined to go into more detail about their European or American plans.
Nio offers six models and plans to launch five more this year under its own brand. The Nio brand is positioned in the premium segment to compete with BMW, Mercedes and Audi.