Nio Group launched its Firefly compact car brand in Singapore on Thursday, marking the Chinese EV maker’s first market in Southeast Asia.
Throughout 2026, the company will enter into right-hand drive countries that offer more favorable trade conditions than Western markets.
Chris Chen, Nio‘s vice president and head of global business, traveled to Singapore for the debut at the Singapore Motorshow 2026, where the company opened pre-orders for the compact EV.
“We want to make a profitable business. So whenever in the market we’re going to, we try to see a greater sales potential that’s going to support all of the investment required to penetrate into this market,” Chen said in an interview with Singapore broadcaster CNA.
Chen joined Nio in May 2017 as director of sales management, helping establish the company’s sales infrastructure before its first vehicle deliveries began in 2018.
He was promoted to senior director in June 2018.
He briefly left the company in late 2019 to serve as vice president of sales for Lincoln China at Ford Motor Co., before returning to Nio in July 2020 as head of global business support.
Market Selection Criteria
Chen outlined the factors Nio considers when evaluating new markets, including size, government policies, infrastructure readiness, and geopolitical stability.
“There are many countries with EV subsidies. There are also countries who are a little bit later,” Chen said. “We look at the infrastructure and the policies to see if this is EV friendly, because we’re selling an EV.”
The executive also pointed to currency instability as a consideration, citing Turkey as an example. “The Turkish market is a little bit bumpy because their currency is not so stable,” he said.
Nio plans to launch in Thailand in March, building on Thursday’s Singapore debut.
The company is also preparing to enter Macau, Britain, Australia, and New Zealand with right-hand drive vehicles.
European Tariffs
Chen indicated Nio is considering local assembly in Europe if sales reach sufficient scale to justify the investment, as the company navigates 31% import tariffs imposed by the European Union on Chinese-made EVs.
The executive mentioned 6,000 units a month as a threshold to consider local assembly.
“I think perhaps in the vehicle sales, we reach to an economic level — for example, we’re able to sell 6,000 cars a month — then we need to think of the local assembly,” Chen said. “I think we have this ambitious plan, but we need to really look at our business performances.”
He acknowledged that sustainable expansion requires deeper commitment to local markets.
“You cannot just export cars to a market and make money and leave. You have to be responsible to contribute to the local community,” the VP stated.
Nio currently sells vehicles in five European markets — Germany, Norway, Netherlands, Sweden, and Denmark — through a direct sales model.
However, it has begun transitioning to dealer partnerships for new market entries including Israel and several European markets.
Legacy Automakers ‘Struggling’
Asked about competition from established manufacturers, Chen said traditional automakers are losing ground in the EV transition.
“Look at the sales numbers, they’re losing the market share heavily. And they’re a little bit struggling to catch up the speed of the EV revolution in China,” Chen said. “They are catching up, but they carry a lot of legacies.”
He noted that product development cycles of three to four years make it difficult for legacy automakers to respond quickly to market shifts.
“Your product portfolio is already determined three, four years ago. It’s not easy to change,” Chen said. “If you lose your speed, then it might be a little bit harder to catch up.”
US Halt
As exclusively reported by EV in June 2025, Nio halted its plans to expand into the US market, as it initially planned in 2021 as part of its goal to be present across 25 countries and regions by 2025.
As part of the adjustment, Nio laid off its Chief Business Officer of the US subsidiary Saurabh Bhatnagar.
Bhatnagar, one of the company’s longest-serving US executives, joined Nio‘s San Jose office in 2016 as Senior Director of Business & Corporate Development and was later promoted to Vice President in 2020.
The executive confirmed his departure three months after EV‘s exclusive report, in September 2025.
US Market Barriers
Asked about the United States, Chen said the market remains out of reach for Chinese EV makers without local manufacturing.
“The US market is a tough market. You have to have a local assembly to make sure that you can sell cars in the US market,” Chen said. “We are looking at the geopolitical reasons. And also all of the taxation systems. Then we decide which market to go.”
Nio had previously targeted entering the US by 2025, a plan announced in 2021 that has since been shelved amid escalating trade tensions between Washington and Beijing.
In May 2024, the Biden Administration quadrupled the Section 301 tariff on Chinese EVs from 25% to 100%.
A year ago, Trump’s Administration further increased tensions with several rounds of tariff increases on Chinese goods.
The levies require local production for any Chinese brand seeking to compete in the American market.
US Automaker Lobbying
Chen’s comments come a month after major US automakers urged Washington to prevent Chinese government-backed automakers and battery manufacturers from opening manufacturing plants in the United States.
The Alliance for Automotive Innovation, which represents General Motors, Ford Motor Co., Toyota, Volkswagen AG, and Hyundai, called on Congress and the Trump administration to take action in a statement submitted for a US House hearing on Chinese vehicles last month.
“China poses a clear and present threat to the auto industry in the US,” the group wrote.
The alliance also urged lawmakers to maintain the Commerce Department’s prohibition on importing information and communications technology from China, citing concerns over data collection by software-defined vehicles.
Chinese Expansion Elsewhere
While the US remains closed, other Chinese automakers have moved forward with overseas manufacturing.
BYD, the world’s largest new energy vehicle manufacturer, opened its first factory in Brazil in mid-2025 with an annual production capacity of 150,000 vehicles, planned to expand to 300,000 units in a second phase.
CATL, the world’s largest battery maker and one of Tesla’s main suppliers, has recently began constructing a new factory in Spain as part of its European expansion.
