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Nio CEO calls for open minds as EU launches subsidy probe

Published 09/21/2023, 02:38 PM
©  Reuters Nio (NIO) CEO calls for open minds as EU launches subsidy probe
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William Li, the head of Chinese electric vehicle manufacturer, Nio (NYSE:NIO) expressed a desire for governments worldwide to adopt a more open-minded approach rather than isolating themselves. This statement followed the European Commission's initiation of an anti-subsidy investigation into electric vehicles produced in China last week.

Li said that there are valuable lessons to be gleaned from China's new energy vehicle industry, emphasizing the importance of embracing open competition for the betterment of users and the promotion of global sustainability.

Nio is ranked 9th among manufacturers of electric and hybrid vehicles in China and is among a number of Chinese EV makers that have been expanding into Europe among growing competition in their home market, helped by strict rules on emissions and Beijing's favorable trade ties.

According to the European Commission, China's market share of electric vehicles (EVs) sold in Europe has increased to 8% and is projected to potentially reach 15% by 2025. Commission President Ursula von der Leyen noted last week that prices in the EV sector were being artificially suppressed by state subsidies.

However, the Chinese Chamber of Commerce to the EU argued that the sector's competitive advantage was not solely attributable to subsidies.

Shares of NIO are down 3.79% in afternoon trading Thursday.

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