Shanghai-based electric car manufacturer Nio has recently cut prices on all its models and removed its free battery-swapping service.
So far this year, Nio hasn’t had the most impressive sales figures compared to its previous ones. In May, the Chinese automaker delivered 6,155 vehicles globally. Volume-wise, Nio was down compared to April of this year and May 2022. Meanwhile, Tesla China’s sales increased in May year-over-year and over April 2023, yielding 77,695 units.
Considering Nio’s lower sales figures, the EV enterprise aimed to restructure its pricing and features to remain more competitive and profitable. On Monday, Nio stated it would decrease pricing by $4,200 (30,000 Yuan) on all models and begin charging for its battery-swapping service. Interestingly, Nio’s CEO, William Li, said the firm would not engage in price wars earlier this spring. This was primarily due to Nio not having high enough profit margins to justify price reductions.
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Nio operates over 1,400 battery-swapping stations, and they have become a hallmark of the brand. However, it will no longer offer complimentary battery swaps. Instead, the service will be available as pay-as-you-go or within packages paid upfront.
This packaging and pricing alteration comes right before Nio’s launch of the ET5 Touring, an estate variant of the company’s ET5 sedan. Packing 482 horsepower and a maximum trailering rating of over 3,000 pounds, the ET5 Touring blends performance with practicality. European deliveries of the ET5 Touring are slated for this summer.
While May was not a stellar month for the electric automaker, Nio’s price reductions and new model launches may help the company recuperate its loss in sales.
