Electric vehicle manufacturer NIO has recently announced its largest price and benefit adjustment in company history in an effort to stimulate sales. The company’s founder, chairman, and CEO, William Li, addressed the move in response to an article on the NIO App.
Li mentioned that the adjustment had been under internal discussion for a considerable period, with input and suggestions taken from some of NIO’s customers. The company’s team was still finalizing the details of the adjustment as of 3 am today, indicating the thoroughness of their considerations.
While NIO acknowledges that not everyone will be pleased with the changes, Li believes that now is the most opportune time to announce them. Despite the need for further contemplation, the company aims to strike a balance that maximizes customer satisfaction.
As part of the adjustment, NIO has reduced the starting prices of all its models by RMB 30,000 yuan ($4,200) effective immediately. Additionally, the battery swap service, previously offered four or six times a month for free, will now be a paid option.
Under the new pricing system, NIO’s entry-level model, the ET5 sedan, starts at RMB 298,000. Customers can also choose to lease the battery with the Battery-as-a-Service (BaaS) option, which reduces the starting price to RMB 228,000.
The new ES6, which recently entered the market and commenced deliveries, now starts at RMB 338,000 under the adjusted pricing system, or RMB 268,000 under the BaaS model.
Notably, NIO has received numerous requests from its supporters in China to implement such an adjustment, with many expressing their opinions on social media platforms.
Previously, NIO offered owners unlimited free battery swap services and complimentary home charging piles. However, these entitlements were subsequently limited to six free services per month and a single free home charging pile.
On April 10, NIO announced upcoming changes effective from June 1, including the removal of free home chargers for purchasers of the NIO ET7, EC7, ES7, and ET5 models, as well as a reduction in the number of free battery swap entitlements to four times per month.
The free battery swap service, being closely tied to the sale of NIO vehicles, could deter potential consumers in areas with limited battery swap stations. They may assume that the cost of their vehicle purchase includes the battery swap service, which may not be readily available in the short term.
Moreover, NIO’s vehicles are relatively higher priced, suggesting that their owners are more likely to have access to fixed parking spaces. For these individuals, home charging is a cost-effective solution, rendering the free battery swap service less essential.
During an analyst call on June 9 following NIO’s first-quarter earnings announcement, Li mentioned the company’s consideration of adjusting customer benefits. This included the possibility of reevaluating the necessity of the free battery swap service for certain owners, indicating a foreshadowing of the recent move.
