Nio Reduces Prices for All Models by 6-9% and Ends Free Battery Replacement Services

As of Monday, June 12, Nio has reduced prices by 30,000 yuan (almost 93,000 crowns) 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 on or after that date.

“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 publish it (…), 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 betting on replacing dead batteries with charged ones as an alternative to more conventional charging. 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 has 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.

Nio also offers some of its models in Europe, namely in Germany, the ET7 and ET5 sedans and the EL7 crossover. At the time of publication of the article, the German website displays prices of 69,900 euros (1.65 million crowns), or 47,500 euros (1.12 million crowns) and 73,900 euros (1.75 million crowns) – but without battery.

The customer can purchase this for an additional 12 thousand euros (284 thousand crowns) in the case of a standard 75 kWh battery or 21 thousand euros (497 thousand crowns) in the case of a larger 100 kWh battery or can rent it for 169 euros (4 thousand crowns), respectively 289 euros (approx. 6,800 crowns) per month.

It is not clear whether the price reduction will be reflected in Europe or other places where Nio cars are sold, or if it will only apply to China.

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