Nio has launched its third-generation ES8 sport-utility vehicle at a lower price point, with founder and chief executive William Li underscoring that survival remains the company’s top priority as competition in China’s electric vehicle sector intensifies.
The new ES8 entered pre-sales this week starting at RMB 416,800 ($58,030) with a 100-kWh battery pack, representing a 25% reduction from the RMB 556,000 starting price of its predecessor. Under the company’s battery-as-a-service (BaaS) plan, the SUV begins at RMB 308,800, compared with RMB 428,000 for the previous model.
Nio said the model continues to generate a gross margin despite the lower pricing, supported by reduced production costs. Li highlighted measures including less aluminum in the body without compromising safety, the sharing of research and development expenses across models, and savings from in-house technologies and greater scale.
Analysts expect the official launch price to come in below the pre-sale figure. Deutsche Bank’s Wang Bin projected a starting price of around RMB 399,000 including the battery.
Nio has not disclosed order numbers but said the new ES8 has attracted more pre-orders in its early stage than the Onvo L90 achieved in a comparable timeframe, according to co-founder Qin Lihong.