Photo: Róbert Hegedüs
Dávid László
28/02/2025 06:00
I browsed for NIO in the most popular Hungarian second hand car market portal and have already found two. So, it is not completely unknown in Hungary, but it is definitely rarely seen on the streets. When will the brand arrive in Hungary?
NIO is a global company with a worldwide presence and, as of today, five markets in Europe: Germany, Sweden, Norway, Denmark and the Netherlands. The NIO brand has been in Hungary since 2022, however, as an employer through our NIO Power Europe Plant and Shared Service Center (SSC). Hungary hosts NIO's first factory outside China. Inaugurated in 2022, NIO EU Power Plant is located in Biatorbágy, near Budapest. The plant is the manufacturing, service, and R&D center for NIO’s power products in Europe. The focus of it is manufacturing and after-sales service of Power Swap Stations, training for power operations in Europe, and the innovation of power products. Our SSC team in Budapest manages all European employees and NIO entities finance and HR service. At the moment, we are focusing on consistently establishing NIO as a premium brand in the existing European markets. As a globally positioned premium brand, NIO is also constantly examining new potential markets.
We are getting familiar with BYD. Can you please introduce NIO?
Firstly, NIO is a premium brand – offering premium smart EVs with a price point starting at around 60.000 Euro. Secondly, NIO is a global company with a global footprint. Our Power Europe Plant, established in Hungary in 2022, is dedicated to enhancing the deployment and service efficiency of NIO Power across Europe, ensuring an exceptional ownership experience for our European users. What sets NIO apart is our unique network of Power Swap Stations, which provide users with the convenience of seamless battery swaps. NIO’s power swap technology provides a worry-free, cost-effective, and sustainable energy solution, benefiting both users and site hosts. During a swap, the entire battery is replaced with a standardized pack, enabling flexible upgrades to meet evolving user demands or adopt technological advancements. Through NIO’s Battery-as-a-Service (BaaS), users can adjust their battery subscriptions based on their needs. They can choose short-term upgrades, such as for a road trip, or make long-term changes for enhanced capacity. This flexibility is a core feature of NIO’s innovative BaaS model.
Hungary voted against European Union tariffs on Chinese electric cars. Hungary is also a hub for the car industry, where western and eastern technologies and factories can meet. Do you think NIO will upgrade, broaden its manufacturing activities in Hungary? Can its decision on the tariffs benefit Hungary?
We are constantly intensifying our relations with Hungary. We took another step in May 2024, when we announced a strategic partnership with the Széchenyi István University Foundation. This partnership not only strengthens our commitment to the European market but also paves the way for significant advancements in sustainable energy and mobility. Through inspiring innovation and fostering educational opportunities, our collaboration will drive the transformation of the automotive industry from within Europe, to benefit Europe and beyond.
Do you expect the escalation of the trade war on electric cars with the European Union?
We regret the European Commission’s decision to impose new duties on Chinese EVs. We will continue to closely work with regulators and partners to foster an environment that supports innovation, sustainability, and fair competition.
What are your sales numbers and experiences in Europe? How is this market different from China?
As of 31st October 2024, NIO has delivered 619.851 vehicles globally, showcasing its strong presence in China and international markets. In the past two years, we have expanded significantly in Europe, introducing six models across five key markets. In China we have already more than 2.700 Power Swap Stations and over 58 million successful battery swaps. In Europe it is taking longer than expected with regards to NIO Power Swap Stations' rollout, as the regulations and official permits of the local authorities differ from market to market. However, in the last few months, the benefits of the Power Swap Station have become much more recognized and this is making it easier to roll out. Our European network now includes 58 Power Swap Stations, enabling convenient travel across the continent. For example, a trip from Amsterdam to Munich can be completed entirely with battery swaps, offering a faster and more efficient alternative to traditional charging. We are consistently evaluating evaluating NIO’s portfolio on the continent, ensuring our European sales strategy is more user-focused, streamlined and efficient.
How can you compete with other big brands, like Tesla?
NIO competes in the premium segment, with vehicles starting at around 55.000 euro, offering cutting-edge technology and unique user experiences. Unlike many competitors, NIO includes advanced features like LiDAR as standard, ensuring toptier smart driving capabilities. All NIO models are equipped with "smart" technology, enabling continuous updates to software and firmware via Over-the-Air (OTA) updates, ensuring the cars remain at the forefront of innovation. Safety is also a key focus, with all NIO vehicles achieving the highest EuroNCAP 5-star safety ratings. Additionally, NIO stands out with NOMI, an exclusive AI companion that operates through voice control, providing a uniquely interactive and intuitive user experience.
The electric vehicle market has been declining in recent months. Do you think it is only temporary?
We view this period as a natural phase of market evolution rather than a long-term trend. Across Europe, we observe varied dynamics: markets like Norway, where we’ve been present since 2021, show a different trajectory compared to Germany. Globally, however, the trend is clear: EVs are gaining momentum. At NIO, our strong performance contrasts with the recent decline in the electric vehicle (EV) market. In October 2024, our vehicle deliveries grew by 30.5% year-overyear, exceeding 20.000 vehicles for the sixth consecutive month. This milestone highlights the robust demand for our premium, user-centric solutions, including innovative technologies like battery swap and integrated energy systems. With over 619.000 cumulative deliveries globally, the appeal of our offerings remains evident. To future-proof our growth, NIO is focusing on expanding its charging and battery swap infrastructure, introducing new models, and entering untapped markets. We see this as an opportunity to solidify our leadership and continue driving the shift toward sustainable mobility, meeting the evolving needs of users while shaping the industry’s future.
How do you see the future of the car industry generally?
The European car industry is currently experiencing its "iPhone moment," where vehicles are transforming into Software-Defined Vehicles (SDVs). This shift marks a new era in which software capabilities are as critical as hardware, redefining what cars can do. NIO anticipated this trend back in 2014 and has since positioned itself as a leader in this transformation. Our "Smart EVs" are at the forefront of two major industry megatrends: battery technology and software innovation. By combining cutting-edge battery solutions with advanced software capabilities, such as continuous Over-the-Air updates, NIO delivers vehicles that not only meet but shape the future of mobility. Our focus ensures that we remain a driving force in the industry's evolution, catering to the growing demand for smarter, more sustainable, and user-centric vehicles.
The author is an editor of Eurasia