By CHEN Xiaotong
At the Shanghai International Automobile Industry Exhibition (Auto Shanghai) Tuesday, EV startup Nio unleashed the new ET7, a mainstream electric sedan, upon the world. Priced from 458,000 yuan (US$66,000) the ET7 may be a lifeboat for a company that remains very far from fulfilling its potential.
This is not a price war
In Q1 this year, about 30,000 Nio were delivered to the driveways and lockups of customers. That’s only 10,000 a month. LI Bin, co-founder and CEO, was not best pleased with the numbers. At a press conference ahead of the exhibition, he said if Nio could only manage to sell 10,000 cars a month, he may have to find a new job.
Li is well aware of the price war going on around him but claims not to be taking part in hostilities. Nio, Li said in the past, had no plan to be a part of any price war
But in early February, Nio slashed the price of its old-style models ES6 and ES8, to “clear inventory.” The ES6 is a battery-powered, 5-seat mid-size luxury SUV that has been in production since in 2019. The price fell from 432,900 yuan to 313,700 yuan. The ES6 competes directly with the Tesla Model Y which can be had for 311,000 yuan.
The ET7, Nio's flagship sedan, was launched in January 2021, with deliveries beginning in March last year. The 2023 ET7 has more than 15 upgrades, including better seats and a 40W wireless phone-charging panel for the same price.
With a comfortable ride, refined interior and a smarter experience, the improved ET7 continues to lead the premium smart electric mid to large-size sedans, said Li.
Including the battery, the new ET7 starts at 458,000 yuan ($66,600) for the version with the 75-kWh pack. If customers choose BaaS (battery as a service), the price starts at 388,000 yuan, with a monthly battery rental of 980 yuan.
No internet sensations
Co-founder and president of Nio QIN Lihong said the company now has only two models, ET5 and ES7 on sale. He expects sales to pick up when the new ES6 is released in May, and again when the ET7 upgrade hits the market in September.
The new ES6 made its debut yesterday and can be secured with a 5,000-yuan deposit. Owners of the new ES6 will receive a 10-year unlimited mileage warranty, up to six free battery swaps per month and free internet access.
Priced from 328,000 yuan, ET5 is the cheapest model Nio has to offer. It went on sale in September 2022 and is a direct competitor with Tesla’s Model 3 and the Xpeng P7.
‘Regression to the quality of products’
Qin said Nio targets the “mainstream hi-end market”, it will not release a cheaper car or try to make “an internet sensation.”
Qin said Nio has more than 40 billion yuan in its bank account and has reduced the cost of making an EV by 60 percent. He restated quality is the key to the high-end market. Nio will not reduce prices or lower quality standards.
