Nio Automotive founder Li Bin said the long-term growth potential of China’s electric car market remained despite increased competition from companies such as Tesla, which bodes well for his company. In an interview with Bloomberg Television, Mr. Li said China’s auto market has recovered from the new crown epidemic, and that the small market share of electric vehicles means they have a chance to extract sales from fuel-fuelled vehicles.
But sales of electric cars in China have fallen for 10 months in a row and are expected to fall 14 per cent this year to less than 1m vehicles, according to Bloomberg New Energy Finance. Meanwhile, Tesla’s sprawling Shanghai plant, the world’s leading electric car leader, began delivering goods earlier this year.
‘We’re really competing with each other, but in general we’re allies, ‘ Mr. Li said. He stressed that both sides were trying to win over users of fuel cars. ‘In fact, our sales have been growing since Tesla’s Shanghai plant went into production, ‘ he said.
NIO Autos on Thursday forecast that the company’s auto shipments and revenue will more than double in the same period last year and the first quarter of 2020. The company also reported a narrowing of first-quarter losses after spending cuts.
NIO Auto’s shares have fallen by more than a third since the initial public offering in New York in 2018.