Up-and-coming EV maker NIO aims to sell cars in the US by 2025. The company plans to import premium Chinese-made EVs to the US as it looks to expand its market.
CEO of NIO in the US, Ganesh Iyer, revealed the EV maker’s vision at the NextChina Conference on Thursday, according to Nikkei.
“My goal, and my commitment to this company, is I want all of us to buy a Nio car from our personal paycheck one day,” Iyer said.
The company’s US leader explained, “I hope that ‘one day’ will be sooner, which means we need help from everyone — government, policymakers, supply ecosystem [and] infrastructure readiness.”
NIO wants to enter the US EV market by mid-decade as part of a 25-country/region expansion. The news comes days after NIO delivered its first EL6 model in Europe.
Despite selling a record 55,432 EVs in the third quarter, NIO has struggled with widening losses all year.
NIO looks to sell EVs in the US despite struggles
In an internal memo review by Bloomberg Friday, NIO CEO William Li announced the company will cut about 10% of its workforce. Li apologized to those affected, saying, “This is a tough but necessary decision against fierce competition.”
NIO, like many automakers, has struggled with the ongoing EV price war, especially in China. The EV maker slashed prices in June by $4,200 (30,000 yuan) to keep pace.
NIO’s higher prices could be an issue in the US market, too. Aggressive price cuts led by market leader Tela have forced other automakers, including Ford and Hyundai, to follow.
NIO will face another disadvantage in the US with the $7,500 tax credit provided to EVs made in North America with domestic batteries. However, as Iyer explained, NIO’s models are too expensive to qualify anyway.
“You don’t want to drop the price just for the sake of dropping the price.” Iyer said, “So as the IRA is written today, from a strict price standpoint, our vehicles will not qualify for IRA. Period.”
Other foreign automakers, like Hyundai, are already building EV capacity in the US. Hyundai is building a $7.6 billion EV plant in Georgia, drawing in a flock of suppliers. Georgia has attracted over $25 billion in EV investments and creating 29,000 jobs.