Beijing June 12 2023: Chinese electric-vehicle maker Nio Inc. slashed starting prices on all of its models by 30,000 yuan ($4,200), days after reporting a worse-than-expected quarterly loss.
Monday’s move further entwines Nio with others including Tesla Inc. in a price war to grab more customers in China, the world’s biggest EV market. The Chinese government also last week started a campaign to boost car purchases and clean-car adoption, particularly in rural areas, after sales growth of EVs and plug-in hybrids slowed to 41% in January-May from 120% a year earlier.
“This adjustment has been discussed internally for a long time,” Chief Executive Officer William Li said in a post on Nio’s app. “There were many things to consider and even until 3 a.m. this morning we were still deliberating. Now is the most appropriate time.”
The price changes take effect immediately, Nio said.
Nio’s sales dipped below 13,000 vehicles in April and May combined from 31,041 in January-March. The Shanghai-based company, which still aims to sell 250,000 EVs this year, said last week its first-quarter net loss widened to 4.74 billion yuan from a deficit of 1.78 billion yuan a year earlier.
Li, who founded Nio in 2014, said in April the company wouldn’t join the price war.
Li said Friday that Nio is delaying some investment, including in research and development, and will be more cautious on its European expansion. The company also pushed back its target of breaking even by the fourth quarter.
Nio’s New York-listed shares have fallen 21% this year.
