On November 9, Volkswagen announced its plans to launch an electric vehicle (EV) under $35,000 in the United States within the next two to four years. Meanwhile, Chinese automaker Nio said it is still considering whether or not they want to enter the U.S. market in 2025.
The CEO of Nio USA, Ganesh Iyer, stated that “Things have changed” with regard to global supply chains, geopolitics, and other elements that affect the company’s decision to sell its vehicles in the United States. Senior vice president and head of strategy at VW Group of America Reinhard Fischer continues, “We are not scaling back” plans for EVs in the U.S. market.
Nio, founded in 2014, is a pioneer in leading the manufacturing of EVs in China. The company creates, develops, collaborates on the production of, and markets high-end smart EVs.
Furthermore, Volkswagen also disclosed that to qualify for additional subsidies under the U.S. Inflation Reduction Act, it will explore localizing battery pack assembly for the sub-$35,000 EV.
Fischer told a Reuters representative at the Reuters Events Automotive USA 2023 conference in Detroit that VW intends to manufacture the EV either in the U.S. or Mexico.
Options for the new assembly facility’s location include:
- Chattanooga, Tennessee
- Puebla, Mexico
- VW subsidiary Scout in South Carolina
Iyer noted at the same conference that Nio is thinking about “any kind of partnerships” and that the company needs to create infrastructure before delivering EVs to the U.S.