Chinese electric vehicle startup NIO offers suppliers a special discount on some of its older models. It comes at a time when automakers ranging from Tesla to Volkswagen are slashing prices in China, the largest auto market in the world.
An unnamed source at the Shanghai-based company told Yicai Global that NIO is providing a discount to its suppliers on models based on its older NT1.0 platform. It comes after the company ran a promotion for retail customers last month.
According to the individual, the few vehicles based on NT1.0 still in NIO’s inventory will only be made available to suppliers.
NIO offers a 30% discount to its suppliers
According to an email sent to Schaeffler Greater China, a manufacturer of bearings, which was later discovered to have been compromised, the automotive parts supplier Mando was given a discount of up to 7 percent on some of NIO’s vehicles.
As a result, Mando plans to offer a price reduction of 30 percent to its suppliers.
As per the information, Mando’s suppliers will be eligible for a discount of up to 35 percent when they purchase NIO electric vehicles.
The manufacturer of automobiles declined to comment when asked about the information contained in the email.
After Tesla reduced its prices at the start of the year, a price war broke out in China’s new energy vehicle industry. After a decline in their sales, more than 30 different vehicle brands have followed suit.
NIO’s deliveries increased by 31%
At the beginning of the previous month, NIO provided a ten percent discount to customers who purchased its older ES8, ES6, and EC6 models.
According to Qin Lihong, who was NIO’s co-founder and president at the time, the company offered a preferential policy based on the model’s service life and status because the three vehicles would be advanced to the new generation.
As a result of complaints from some NIO clients who had previously purchased these models, the company decided to reduce the amount of the discounts it was offering.
In the first two months of this year, NIO’s vehicle shipments increased to 20,663, a 31 percent increase from last year.
See Also:
- NIO App no longer provides ET7 hold time as the reworked model ramps up
- NIO electric vehicle sales nearly doubled in February
- NIO will launch its second NIO House in Germany on March 30
- NIO celebrates the achievement of the 10,000th battery swap in Europe
- NIO to erect F4 plant in Chuzhou, aims to start production for its Firefly sub-brand
