Updated April 14th, 2024 at 09:42 IST

Nio Founder advocates for openness in US amidst EV market restrictions

Nio's founder highlighted Tesla's success in China, where the company has sold 1.36 million EVs in three years, contributing to increased EV penetration.

Reported by: Business Desk
Nio Founder advocates for openness in US amidst EV market restrictions | Image:Tesla
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China-West EV tensions: Chinese electric vehicle (EV) manufacturer Nio's founder, William Li, emphasised the importance of openness in the EV market during a rare speech at Harvard University. His remarks come as US politicians consider further restrictions on Chinese access to the American auto market, the world's second-largest.

Li praised China's rapid EV growth, attributing it to an "open and competitive" market that welcomes products regardless of their brand or origin. He highlighted Tesla's success in China, where the company has sold 1.36 million EVs in three years, contributing to increased EV penetration and industry vitality.

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Despite tensions between China and the West over alleged state subsidies for Chinese EV exports, Li expressed confidence that China would maintain an open market approach. He argued that competition drives greater investment, a longer time to break even, and less margin for error, ultimately benefiting industries and promoting sustainability.

The European Union is investigating Chinese EV makers like BYD, Geely, and SAIC for alleged subsidies, which could lead to tariffs. However, Chinese EVs face steep tariffs in the US market, limiting their presence. President Joe Biden is considering raising tariffs on Chinese EVs, citing concerns raised by Senators Marco Rubio and Sherrod Brown regarding national security.

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Nio, China's largest EV maker, is exploring the feasibility of entering the US market. In the first quarter of 2022, Nio sold 30,053 EVs in China, compared to Tesla's 132,420 vehicles. Despite the challenges, Li remains optimistic about Nio's prospects and the benefits of a competitive market.

(with Reuters inputs

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Published April 14th, 2024 at 09:42 IST