Nio’s European restructuring after weak sales in Germany and Europe

Nio is restructuring its European business due to weak sales, shifting to a unified model and dealerships in some markets. Learn about its challenges and global growth.
Chinese automaker Nio is undertaking a major business restructuring in Europe following weak sales. The company is moving away from its previous model of separate national subsidiaries and shifting to a unified functional structure.The most significant changes have occurred in Germany, where the head of the local division has left. In 2025, only 325 Nio cars were registered in the German market, marking one of the worst results in the region.Overall, across seven key European markets, sales totaled 1,129 vehicles, a 31% decline compared to the previous year. In contrast, rival Xpeng sold around 3,000 cars in Germany alone.Globally, however, the company saw growth. In 2025, sales reached approximately 326,000 vehicles, a 46% increase, and Nio recorded its first quarterly operating profit.As part of its new strategy, Nio aims to boost efficiency and cut costs. A key change will involve shifting from direct sales to a dealership model in some countries, while maintaining the current successful setup in other markets.Despite these challenges, Nio continues to view Europe as an important area for development.