Chinese electric vehicle maker NIO began reducing its prices recently, starting with the ES6, ES8, and ES7 models. This promotion plan was first announced at the company’s regular meeting on the morning of February 1. However, NIO‘s official website, app and other official information channels did not publish this news, according to Jiemian News.
NIO‘s sales staff described this price reduction promotion scheme as “having never seen such a big preferential margin and unprecedented preferential rate”.
The 2022 version of the NIO ES6 and ES8 can still take advantage of the national subsidy worth over 10,000 yuan ($1,489), wherein the loan is zero interest and has zero handling fees for three years. If users need to replace a new car with an older model, they can be granted a subsidy of 15,000 yuan.
NIO‘s sales staff said that, in the sales system, existing vehicles currently in stock can be made into exhibition cars, so that the ES6 can fetch a discount of 18,000 yuan, and the ES8 can be discounted up to 24,000 yuan. If the inventory period of a car is more than 120 days, the maximum cash discount can reach 40,000 yuan.
In addition, for the ES6 and ES8, NIO also offered up a fully packaged NIO Pilot system worth 39,000 yuan. If users upgrade to a 4,900 yuan NOMI and pay another 6,500 yuan for the enhanced display, NIO will immediately reimburse 9,600 yuan.
According to this promotion plan, the price drop of the NIO ES6 and ES8 will exceed 100,000 yuan at the higher end. Moreover, NIO has no restrictions on the purchase methods of vehicle and battery rental schemes. For users who pay for their vehicles in full, including the NIO ES7, the company will issue discounts ranging from 3,000 yuan to 5,000 yuan.
In January, NIO delivered 8,506 vehicles, down 11.9% year-on-year and 46.2% quarter-on-quarter. With Tesla, XPeng, AITO and other brands cutting prices, NIO is under great pressure to do the same. The price reduction is aimed at buffing up sales volumes for the month of February, while reducing the scale of stock cars and preparing for the new models to be launched later in 2023.
“After the epidemic, the process of economic and consumer confidence recovery will be relatively long, and high-end EV models will be especially affected. Market competition is becoming more and more fierce, products and technologies are becoming more homogeneous, and competitive advantages are becoming much more difficult to obtain,” William Li, founder of NIO, has stated.
NIO‘s price reduction further shows that with the end of state subsidies in 2023, market competition has become even more fierce, and it seems inevitable for new energy vehicle enterprises to see a price war in 2023.