According to a local media report, NIO is giving discounts of up to 100,000 yuan ($14,900) on specific models to increase sales.
According to a report from Jiemian today, NIO has started to lower the prices of the 2022 ES6 and ES8, with some discounts on the more recent ES7.
According to the report, which cited two salespeople, NIO management told sales about the plan at a conference on the morning of February 1 and started executing it.
The report claims that the business should have made this information available on the NIO website, NIO App, or other official channels.
According to the report, NIO salespeople claimed they had never seen such significant discounts.
Nio’s exclusive subsidies
The same NIO subsidies as the now-expired state subsidies are still available to consumers who buy 2022 ES6 and ES8 models, and the three-year loan is the fee- and interest-free.
According to the report, NIO also offers customers an exclusive subsidy of RMB 15,000 if they swap in their old cars.
According to NIO salespeople, customers who purchase the ES6 will be eligible for an additional RMB 18,000 in savings, and those who buy the 2022 ES8 will receive an RMB 24,000 discount.
The maximum cash discount for cars with an inventory cycle of 120 days or longer is RMB 40,000.
Additionally, NIO provides customers with a free NIO Pilot package worth RMB 39,000 when they buy the 2022 ES6 and ES8.
NIO also provides an RMB 9,600 discount on the NOMI optional device, and a 6,500 RMB improved display package worth RMB 4,900.
Nio gives discounts and exclusive packages
According to the report, NIO is providing owners of vehicles with an inventory cycle of more than three months with a service package totaling more than RMB 10,000, including insurance.
According to the report, the value of the 2022 NIO ES6 and ES8 has been reduced under the promotional program by up to more than RMB 100,000.
According to the report, consumers who buy cars with batteries or those with BaaS (battery as a service) have access to the program.
For customers who make a one-time cash payment, NIO also provides discounts ranging from RMB 3,000 to 5,000, including ES7.
One of the salespeople presented a purchase option that showed the 2022 ES6 Performance Edition with the 100-kWh battery pack would cost RMB 432,900 after adding a few options but could be purchased for a reduced price of RMB 313,700.
He emphasized that there are few of these cars on the market.
Another NIO salesperson claimed that many of the stock cars are currently unavailable because of the program’s implementation yesterday.
Notably, the company is upgrading the 2022 NIO ES6 and ES8 models, based on the NT 1.0 platform, to the NT 2.0 platform.
The all-new ES8 and EC7
On December 24, 2022, NIO unveiled two new models at NIO Day 2022: the all-new ES8 and the EC7 coupe SUV, with deliveries beginning in May and June 2023, respectively.
The latest batch of models that will be permitted for sale in China was announced by the Chinese Ministry of Industry and Information Technology on January 11, and the new NIO ES6 was among them.
According to the filing information, the model’s LiDAR and camera setup are compatible with the other current NIO models built on the NT 2.0 platform, including the ES7, ET7, ET5, EC7, and the brand-new ES8.
The new ES6 is something for NIO to look forward to because it is the company’s least expensive SUV and has brought in the most sales in a long time.
According to data tracked by CnEVPost from the company and the China Passenger Car Association (CPCA), the ES6 delivered 32,877 units from January to August 2022, making up 46 percent of NIO’s overall deliveries of 71,556 units during that time.
The new energy vehicle (NEV) industry in China is under increasing pressure due to the withdrawal of state subsidies and the slowing of economic growth, impacting people’s purchasing power.
According to data released by the company yesterday, 8,506 vehicles were delivered in January, a decrease of 11.87 percent from 9,652 in January last year and a 46.22 percent drop from the 15,815 cars shown in December.
NIO did not explain the decrease in deliveries.
CNY affected Nio’s deliveries
The firm’s regional rival XPeng, which started its Chinese New Year holiday in mid-January, claimed yesterday that the decline in deliveries was due to a seasonal slowdown. The Chinese New Year holiday was observed from January 21 to January 27.
The holiday seasonality was the factor that affected car manufacturers’ January deliveries, the most obvious. Still, the sector is now starting to be concerned about growth due to the removal of state subsidies.
Cui Dongshu, secretary-general of the CPCA, stated in a January 18 article that China’s NEV sales growth has achieved a bottleneck and will be a massive problem after some policies are removed.
NEV models’ prices have in the past increased excessively. Still, Cui claimed that fewer orders and price reductions by top automakers, including Tesla, have caused consumers to adopt a wait-and-see attitude.
Tesla’s price cuts pressure Nio
On January 6, Tesla dramatically reduced the cost of the whole Model 3 and Model Y product lines in China, its second price reduction there in the previous three months.
According to a memo cited in a report published yesterday by Reuters, Tesla intends to produce an average of almost 20,000 cars per week at its Shanghai plant in February and March due to the price reduction’s impact on demand.
William Li, the founder, chairman, and CEO of NIO has previously played down the effects of Tesla’s price reductions on his business by arguing that the two companies target different markets and that NIO’s average selling cost is RMB 100,000 yuan higher.
Li is worried about pressure on automobile demand when China’s economic growth is slowing down.
NEV market to face market pressure
Li stated that some consumers may release their 2023 vehicle demand early as a result of the withdrawal of subsidies in a media group interview after the NIO Day 2022 event on December 25 and that it will take some time for the supply chain to restore from the Covid effect and for market confidence to return.
I think (the NEV market) will be under more pressure in the first half of next year on both the supply and demand side, but definitely a little bit more pressure on demand
William Li, CEO of Nio stated on pressure in NEV market
Li predicted that the initial half of the year would be difficult for China’s NEV market, but on the plus side, a gradual recovery could occur in the second period or in May.
