Sunday, June 7, 2020

Electric cars: NIO

NIO is a Chinese automobile manufacturer headquartered in Shanghai, specializing in designing and developing electric autonomous vehicles. The company is also involved in the FIA Formula E Championship, the first single-seater, all-electric racing series.

NIO ES8, a full-size SUV
Powered by a lithium-ion battery pack, a package that is also swappable

CEO William Li said Nio should reach annual production capacity of 150,000 units by the end of 2021. Longer term, Nio aims to double output to 300,000 per year. For context, Nio delivered 20,565 electric vehicles in 2019.

JPMorgan expects the EV share of the total China car market to quadruple to 20% in 2025 from under 5% in 2019. The costs of producing EVs and traditional vehicles will reach parity by 2023, driven by lower battery costs, the firm says.

China, the world's biggest market for electric cars, wants EVs to be 25% of all new car sales by 2025.

Unlike Tesla, Nio does not manufacture its own vehicles. It partners with China's Jianghuai Automobile Group on manufacturing the ES8, ES6 and EC6 utility vehicles.

As part of its "Battery as a Service" strategy, Nio also runs battery-leasing and battery-swapping services. Essentially, the car and the battery are sold separately. Subscribers to the program can rent the battery for a monthly fee.

Battery swapping was first available on the NIO ES8
Unlike Tesla, which has tried battery swapping but has never deployed it on a large scale and relies instead on its Supercharger network, Nio has built a functioning network of 131 battery-swap stations that covers a few thousand kilometers of Chinese expressways.


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