Nio aims to compete with Volkswagen for market share in Europe by launching a vehicle that will be available for less than 30,000 euros （$33,060).

William Li, the CEO and founder of NIO, expressed his admiration for German luxury automakers like Mercedes-Benz, BMW, and Audi in a recent interview with the German magazine Der Spiegel.

However, he asserts that Germany lags China in terms of software and technology when it comes to electric vehicles. The company will introduce two more brands in addition to the NIO name in order to promote growth in the European market, where Li notes that initial reception has been positive.

One of the new brands has a target price below 30,000 euros (about $33,165) in order to satisfy the growing demand for small and compact electric vehicles. In particular, the new brand wants to compete with big manufacturers like VW.

When asked if Nio worries about recent Tesla price cuts, Li responded by saying “ No, that's not our core segment; the prices of our comparable models are already about $20,000 higher than Tesla's.”

The CEO added,"It's also critical that cars maintain their value, and these price reductions lower the EVs’ residual value. Such actions, in his opinion, are simply detrimental to customers.”

Due to China's control over the supply chain and raw materials, Li claimed that his business and its Chinese colleagues that also produce electric vehicles have a cost advantage of up to 20% over competitors like Tesla.

With the expedited deployment of battery swapping stations and the introduction of five new models to spur growth, NIO said it is adhering to its objective of turning a profit this year.