EV maker NIO revealed Monday it’s slashing prices on all of its models by $4,200 (30,000 yuan) in China in addition to ending free battery swapping services, effective immediately.
NIO cuts EV prices to boost sales
The move comes after NIO was the only major EV major in China to see a decline in monthly deliveries in May (down nearly 8%).
NIO announced the news on its socials, as CEO William Li said the price cuts have been “discussed internally for quite a while” after taking advice and suggestion from users.
The Chinese EV maker is also facing shrinking profit margins. In the first quarter of 2023, NIO’s vehicle margin was 5.1% (down from 18.1% in Q1 2022), while its losses rose to $690.1 million (4,739.5 yuan), up 166% from last year.
Also starting June 12, NIO is no longer offering its free battery swap service. Instead, buyers will have the option to purchase it separately for a one time fee.
NIO introduced several flexible charging and battery swap services instead to boost profitability. For example, buyers that purchase a new NIO EV before July 31 have the option of paying 30,000 yuan for a package that includes:
- Free battery swaps (4 per month)
- 10-year unlimited mileage
- Lifetime free internet (8 GB monthly traffic)
- Lifetme free roadside assistance
Meanwhile, NIO launched what could be its most important model yet in the second-generation ES6 last month. The electric SUV has been NIO’s primary seller over the past few years, and the upgraded model, based on its NT 2.0 EV platform, is already generating hype.
Customers that place a deposit for the new ES6 or new ES8 before July 31 are eligible for free home charging.
Nio says it has built 1,484 battery swap stations, proviiding over 22.9 million free battery swap services to date. The expanding network, according to NIO, enables them to provide “users with a more flexible and considerate service expereince.”
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