(Yicai) Sept. 20 -- Chinese new energy vehicle startup Nio refused to comment on a media report claiming it is considering buying German automaking giant Audi's plant in Brussels, Belgium.

When Yicai contacted Nio to inquire about the report yesterday, the Shanghai-based firm said "no comments at the moment."

Nio will submit a bid to buy Audi's factory in Brussels to the latter's parent company Volkswagen Group by Sept. 23, Belgian media outlet De Tijd reported yesterday. The move would help Nio avoid the European Union's new additional import duties on China-made electric vehicles.

Audi announced in July that it planned to renovate its Brussels plant, which produces its EV model Q8 e-tron. The company shut down the factory early this month, and its nearly 3,000 workers began to protest. Audi Brussels' spokesperson Peter D'Hoore then confirmed the firm is in talks with potential investors, including carmakers.

Nio would consider building a plant in Europe if it could reach annual sales of 100,000 vehicles in the region, Chairman and Chief Executive William Li said earlier. However, according to market research firm Dataforce, Nio only sold 2,404 cars in Europe last year.

Nio's upcoming third brand Firefly aligns more with European consumers' demand, which could help the automaker seize a competitive edge in the market despite increased trade costs, Li noted.

Nio kicked off operations at its battery swap station in Hungary in September 2022. Since then, the company has opened 56 battery-swapping stations across Europe.

Other Chinese carmakers, such as BYD, Chery Automobile, and SAIC Motor, have already established production bases in Europe or are planning to do so by acquiring existing facilities or building new ones.

Chinese automakers expanding overseas usually transition from direct exports to localized production, sales, and supply chains, according to a report by Kaiyuan Securities. Direct exports allow rapid entry into new markets, while localized supply chains enable a better understanding of market dynamics, avoid tariff barriers, and reduce transportation costs.

Editor: Futura Costaglione