China’s Nio cuts prices on all electric vehicle models by more than $5,000
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Nio’s sales dipped below 13,000 vehicles in April and May combined from 31,041 in January to March.
PHOTO: REUTERS
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BEIJING – Chinese electric vehicle (EV) maker Nio slashed starting prices on all of its models by 30,000 yuan ($5,600), days after reporting a worse-than-expected quarterly loss.
Monday’s move further entwines Nio with others including Mr Elon Musk’s Tesla
The Chinese government last week started a campaign to boost car purchases and clean car adoption, particularly in rural areas, after growth in sales of EVs and plug-in hybrids slowed to 41 per cent in the January-May period, from 120 per cent a year earlier.
Nio chief executive William Li said in a post on the company’s app: “This adjustment has been discussed internally for a long time. There were many things to consider, and even until 3am this morning we were still deliberating. Now is the most appropriate time.”
The price changes take effect immediately, Nio said.
Nio’s sales fell below 13,000 vehicles in April and May combined, from 31,041 in January to March.
The Shanghai-based company, which still aims to sell 250,000 EVs in 2023, said last week that its first-quarter net loss widened to 4.74 billion yuan from a deficit of 1.78 billion yuan a year earlier.
Mr Li, who founded Nio in 2014, said in April that the company would not join the price war.
He said on 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 per cent in 2023. BLOOMBERG
