Written by Cláudio Afonso | LinkedIn | X
Over the past few days, Nio Group founder and chief executive William Li traveled to Egypt to sign a memorandum of understanding with the company’s major investor, Abu Dhabi-based CYVN Holdings.
The signing marked Nio’s official expansion into the Middle East and North Africa (MENA) region.
The company plans to grow its presence through a joint venture with CYVN Holdings, which holds a 20.1 percent stake in Nio following two significant investments totaling $3.3 billion in the second half of 2023.
Under the new joint venture, Nio will manufacture and sell its electric vehicles across the MENA region starting with the UAE and Egypt. Onvo and Firefly, the company’s sub-brands that target cheaper segments, are also planned to debut in the region.
On the Chinese social media platform Weibo, Li reflected on the growing presence of Chinese car brands on the streets of Egypt, Nio’s first market in North Africa.
“While researching the local market in Egypt, I noticed that Chinese cars are becoming increasingly prevalent, with many familiar logos spotted,” Li wrote.
In a video, Li remarked, “In the [inaudible] area, there are a lot of MG cars [a brand part of China’s SAIC Group], which give off a Mercedes-like vibe here. On the streets of Cairo, I saw a lot of Chinese cars.”
Here’s the video shared by William Li.
“(…) I took the opportunity to research the Egyptian car market. From the streets of Cairo to the airport, I found the market quite interesting,” Li said later in the video.
“There are many second-hand cars, but I was very pleased to see that among the new cars, there’s an increasing presence of Chinese brands,” Nio Group CEO added before naming BYD, Changan, and Chery as examples of other brands seen in the country.
“MG cars here give off a Mercedes-like feel. I saw a BYD F3, and over there, a Chery. Chery is doing well here, and I also spotted a Changan MG earlier,” Li said.
Beyond market expansion, Nio and CYVN Holdings also plan to establish a research and development (R&D) center in Abu Dhabi, focusing on autonomous driving and artificial intelligence technologies.
Nio’s first showroom in the UAE will be located at the Galleria Al Maryah Island in Abu Dhabi, with the region’s first battery swap station planned next to the Yas Marina Formula 1 Circuit.
In December 2023, Nio secured a $2.2 billion investment from CYVN Holdings, raising the investor’s stake to 20.1 percent of the company’s total shares.
This followed a $738.5 million investment made by CYVN in July, bringing their total investment in Nio to approximately $3 billion.
Written by Cláudio Afonso | LinkedIn | X
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