Nio Denies Rumor Chinese EV Startup to Hike Prices, Says Discounts Will Shrink(Yicai) July 19 -- Nio rebutted rumors that the Chinese electric carmaker plans to increase its prices by CNY5,000 (USD690), but said current sales its discounts will be scaled back. BMW and Audi are also slimming down the discounts they offer in China.
The suggested retail prices for Nio's models will not rise, but recent purchase incentives will finish by the end of this month, sales staff told Yicai. The Shanghai-based producer of new energy vehicles will trim its discounts by CNY3,000 (USD415) to CNY5,000.
According to online rumors, Nio plans to increase the prices of its models by CNY5,000 each.
The CNY18,000 (USD2,480) discount Nio offers on the ET5 in Shanghai will come to an end this month, as will the CNY20,000 on the ES6 and the CNY28,000 on the ES8, the firm said. Customers will also only get CNY3,000 off the price if they buy a vehicle in stock, compared with the current discount of CNY6,000 to CNY8,000, it added.
Nio's sales have been quite strong over the past two months, a source close to the company said. The slightly eased discounts may be a way to test the market, allowing for further adjustments to sales strategy in the future, the person noted.
In March, Nio cut the price of its BaaS battery rental service to CNY728 (USD100) per month, and along with other discounts, saw sales exceed 20,000 in the following months. It delivered a record 21,209 vehicles last month.
Yicai reported yesterday that BMW and Audi are also lowering their discounts in China this quarter as the German luxury carmakers make strategic changes, such as ending sales targets and easing inventory requirements for dealers, following severe losses stemming from acute price competition in the world's biggest car market.
Nio has already been narrowing its discounts since June, Chairman and Chief Executive Li Bin said on a first-quarter earnings call. The key task next is to increase gross profit while ensuring sales growth, he added, saying gross margin will return to double digits and continue to improve this quarter and next.
Editor: Martin Kadiev
