Nio appointed Green Car as its national distributor in Azerbaijan and will start delivering vehicles in the country in the second quarter of 2025.
Nio (NYSE: NIO) has officially announced its entry into the Azerbaijan market through a partnership with a local distributor, rather than the direct sales model the company had been using, marking the beginning of a more flexible strategy in international markets.
The Chinese electric vehicle (EV) maker today announced the signing of a strategic cooperation agreement with Green Car at a forum in the Azerbaijan Pavilion of the 29th Conference of the Parties to the UN Framework Convention on Climate Change (COP29) in Baku, AzerbaiJanuary
Nio announced that it will officially launch operations in Azerbaijan to provide EV products and services to local customers, according to a press release.
Green Car will serve as Nio's national general distributor in Azerbaijan, directly reaching local users, the release said.
Founded in 2014, the distributor is a pioneering force in green technology in Azerbaijan, focusing on the promotion and integration of EVs and sustainable transportation solutions.
Under Nio's guidelines, Green Car will launch localized operations for products, services and community, and invest in and build Nio's local sales and service networks including charging and swapping facilities, service centers, and Nio Houses.
At the same time, Nio will develop and license digital products such as the Nio Azerbaijan website and mobile ap for Green Car to ensure a consistent global user experience.
Nio will officially start deliveries in Azerbaijan in the second quarter of 2025, offering a full suite of services to users in the Caucasus, the company said.
The signing ceremony was attended by Zhao Yingmin, head of the Chinese delegation to COP29 and vice minister of China's Ministry of Ecology and Environment, Umayra Tagiyeva, deputy minister of Ecology and Natural Resources of Azerbaijan, Qin Lihong, co-founder and president of Nio, and Rustam Ibrahimov, COO of Green Car.
Azerbaijan's promising new energy vehicle market is flourishing with opportunities, and Nio desires to be a part of it, accelerating the company's globalization, according to Qin.
“With rich experience and ample resources in the local market, our partner, Green Car, will facilitate our growth in Azerbaijan, and provide local users with smart EV products and services featuring innovative technology and experience excellence,” said Qin.
This is the first time that Nio has appointed a “distributor'”, in a departure from the direct sales model it has previously adhered to.
The company has always been a strong supporter of the direct sales model, and maintained it even when it entered the European market, hoping to bring its entire service system overseas.
Over the past year, there have been several reports that the company would try the dealership model, though all have been denied.
The direct sales model is seen as helping to better serve customers and gain loyal supporters, but has also been criticized for being costly and not flexible enough.
Nio's local peers Xpeng (NYSE: XPEV) and Zeekr (NYSE: ZK) has adopted the dealer model in their efforts to expand into overseas markets to achieve rapid expansion of their business coverage.
The strategic partnership with Green Car further extends its global reach, Nio's press release today said.
In the future, the company will continue to push forward the research and development and innovation of its core technologies to serve users in more countries and regions, it said.
Nio entered the EU market in 2021, taking the first step in its globalization layout. So far, it has launched the ES8, ET7, ES7, ET5, ET5 Touring, and ES6 in Norway, Germany, the Netherlands, Sweden, and Denmark.
Because of the trademark rights lawsuit with Audi, Nio's ES series models have been renamed EL series in overseas markets, with ES8 as EL8, ES7 as EL7, and ES6 as EL6.
It has built 58 battery swap stations in Europe, including 20 in Norway and 19 in Germany, according to data compiled by CnEVPost.
The company has also opened 8 Nio Houses, 10 Nio Spaces, and 45 service centers in Europe.
In October, Nio announced its entry into the Middle East and North Africa (MENA) region and would start comprehensive business operations in the UAE starting from the fourth quarter this year.
Nio plans to launch 1st hybrid car in 2026, but will only sell in overseas markets, Reuters reports
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