Source: Visual China

Nio Inc. began to offer massive price cuts up to RMB100,000 (US$14,759) for versions of ES6 and ES8 updated in 2022 from the beginning of this month, Chinese digital media outlet Jiemian learned from salesperson at the company, who called the promotion unprecedented as they “have never seen such a big discount”.  According to these sales staff, customers who bought these two SUV models can still enjoy more than RMB10,000-subsidy funded by Nio, with the same amount as the national subsidy for purchase of new energy vehicles (NEVs) expired at the end of 2022, and have access to auto loans waivered fees and interest for three years. If the purchase is made by replacement with used vehicle made by Nio, the customer can also receive a one-time subsidy of RMB15,000. Moreover, buyers of ES6 and ES8 can obtain another discount of RMB18,000 and RMB24,000 respectively, if their purchased changed from on sales to vehicles on display, and the cash discount could be as much as to RMB40,000 if the buyer choose vehicles which in inventories more than 120 days, the sources noted.  

Nio is near to update its 2022 versions of ES6, ES8 and EC6, and buyers of these models in stock and on display at the exhibition, though a small number, can enjoy special promotions for vehicles at the auto show under the company’s policy, an official at the EV manufacturer told the state media the China Securities Journal.

Nio is the latest EV company that responded to Tesla’s new price cuts in the start of the year. Tesla slashed price by up to 13% in China on January 6, its second promotion through direct cuts in more than two months. Following a range of the starting price of Model Y and Model 3 sold in China were down to new low and about 43% and 30% cheaper than those on sale in U.S.

Less than a week later, Tesla lowered prices across the U.S. Europe, the Middle East and Africa by as much as 20% on January 12, expanding its price war globally. A day after Tesla’s new move, Chinese automaker Seres Group announced to trim prices by RMB 30,000 for two SUV EV models co-developed with Huawei. The starting price of Aito M5 and Aito M7 was downed to RMB259,800 and RMB289,800 respectively. In less than a week, Xpeng announced to offer a new round of price cuts between RMB20,000to RMB36,000 for three EV models including P5, P7 and G3i, representing a slash range between about 10% to nearly 13%.  

The ripple effect showed beyond China. Earlier this week, the U.S. auto giant Ford followed suit with the Mustang Mach-E.  Prices of the electric SUV model, comparable to Tesla’s Model Y, was cut by as much as US$6,000.

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