Nio Expresses Interest in Purchasing Audi’s Belgium Plant to Avoid EU Import Tariffs

Nio, a prominent Chinese electric vehicle (EV) manufacturer, is considering acquiring Audi’s plant in Belgium as a strategic move to circumvent the costly new import tariffs imposed by the European Union (EU) on Chinese-made electric cars. According to Belgian newspaper De Tijd, Nio plans to submit an offer to Volkswagen Group, the parent company of Audi, by 23 September.

Audi has already announced its decision to cease production at the Belgium plant, which has been operational since 1949, after the final Q8 E-tron electric SUV rolls off the assembly line in 2025. This move is part of Volkswagen Group’s larger cost-cutting initiative, which also involves the potential closure of two German plants.

Nio’s interest in the Audi plant stems from the 20.8% tariff it currently faces for accessing European markets, in addition to the standard 10% levy. By acquiring the Belgium plant, Nio aims to establish a manufacturing base within the EU, thereby avoiding these import tariffs.

However, any potential purchase of the Audi site by Nio is expected to come with certain conditions, particularly regarding job security for the plant’s 2910 employees.

Nio entered selected European markets in 2021, but its sales volumes and market penetration remain relatively limited. The company currently offers models such as the ET5 and ET7 saloons, ET5 Touring estate, and EL6, EL7, and EL8 SUVs in Denmark, Germany, the Netherlands, Norway, and Sweden. All of these models are exclusively manufactured in Hefei, China.

In addition to its existing lineup, Nio recently introduced a new mainstream EV brand called Onvo. The first model from this brand is a mid-sized crossover designed to compete with the Tesla Model Y. Furthermore, Nio is also preparing to launch a third brand named Firefly, which will focus on producing even more affordable vehicles.

According to Nio CEO William Li, “The relationship between Firefly and Nio is similar to the relationship between Mini and BMW: it will be a high-quality small car.”

By acquiring Audi’s Belgium plant, Nio aims to strengthen its presence in the European market and overcome the challenges posed by import tariffs. This strategic move will not only enable Nio to expand its manufacturing capabilities but also ensure its long-term growth and success in the region.