Nio Joins Price War in China: Cuts Prices by 30,000 Yuan for All Models

The price war in China was started by the American Tesla, and more than 40 brands, including Volkswagen, joined it in the Chinese market.

Starting today, Nio will cut prices by 30,000 yuan (almost 93,000 CZK) for all models, including its redesigned sport-utility vehicles (SUVs) ES6 and ES8. This represents a discount of six to nine percent. The company will also no longer provide free battery replacement services to buyers who make a deposit today or later.

“We’ve been discussing the changes internally for quite some time and have incorporated advice and suggestions from some users,” Nio CEO William Li said in a company statement. “It’s the best time to post this… but we can’t please everyone,” he added.

Nio offered existing owners a free battery replacement service at least four times a month. It is among a handful of electric car manufacturers that are betting on battery replacement as the main power option for electric cars. Tesla’s main rival rejected battery replacement, saying it was problematic and unsuitable for widespread use.

Nio car sales fell in April and May as the price war intensified in China and overall demand weakened. With its all-electric cars priced above 300,000 yuan, Nio delivered 43,854 cars to customers in the first five months. For comparison, Tesla’s sales in China were more than five times higher in the same period.

Shares in Nio rose nearly six percent in Hong Kong today. But they have lost more than 20 percent since the beginning of the year.