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Chinese will promote battery replacement in electric vehicles instead of charging worldwide
Chinese company NIO, a pioneer in rented or replaceable batteries in electric vehicles, is about to enter international markets with this model. The company will make its first attempts in the USA and Europe, and in three years it promises to appear on all key car markets in the world. The manufacturer promises a simple warranty service and a unique model with «instant» replacement of a discharged battery with a full one instead of long charging at stations.
NIO station for automatic replacement of the traction battery in an electric vehicle in three minutes
According to Chinese media reports, NIO has formed an export department codenamed «Project Marco Polo». And if the real Marco Polo traveled from Europe to the East, then the Chinese will make the way back. So far, the company’s plans are very modest — to sell about 7,000 ES8 and ES6 electric vehicles in the European region in the next two years. But this will be a trial step, and behind it there will be a lot of work on the deployment of the service with the organization of a network of stations for the automatic replacement of traction batteries.
NIO management did not hide the desire to enter the European electric vehicle market from the very beginning. Back in January 20221, when the first production electric car, the NIO ES8, went on sale in China, NIO CFO Tony Hsieh said that NIO would start selling electric vehicles in the US in 2021. So far, this has not happened, although the company entered the stock exchange in this country. This year, at one of the exhibitions in China, the founder of the company, William Li Bin (William Li Bin), defined the overseas direction as «USA and Europe».
In August, the head of the company spoke more specifically, marking the start of overseas sales in Europe as the second half of 2021. The company intends to enter the world’s main automotive markets by 2023 or 2024.
NIO has been selling 3,000 to 4,000 electric vehicles monthly in China since April this year. By comparison, about the same number of electric vehicles are produced every week by Tesla’s Shanghai plant. But NIO is also ramping up production. So, in October, the company for the first time brought the production of electric cars at its advanced plant in Hefei to 5,000 units per month.
The Chinese rightly expect that the initiatives of the European authorities to encourage transport on new energy will help them to develop in the Old World. In September, ten major European countries sold a total of 141,000 vehicles using new energy sources, up 165% year-on-year and 70% more than the previous month. At the same time, the level of penetration of cars on new energy sources reached 12.8%. Annual sales in Europe are expected to exceed 1.1 million units, which will be the main support for NIO’s global sales growth. And the main competitive advantage of the company should also help in this — a service for renting batteries or quickly replacing batteries instead of charging.