AutoBeta(AutoBeta.net)06/12 Report--

On June 12, Xilai officially announced that it would adjust the rights and interests of users and the price of all models, abolish the free replacement of electricity for life, adjust the vehicle warranty period from 10 years to 6 years or 150000 kilometers, and reduce the price of new cars by 30, 000 yuan.

The rights and interests of the first owner of a new car will be adjusted to: 6-year or 150000-km warranty, in which the three power systems can enjoy 10-year unlimited mileage warranty; 6-year free car network; lifelong free road rescue. At the same time, NIO said that free power exchange will no longer be used as a basic car right after June 12, and users can choose to change electricity on a single pay. after that, NIO will launch a flexible electricity supplement package. For users who have already picked up their cars, the rights and interests of the first car owners will remain unchanged. When buying a new car from NIO, users can choose to transfer the car rights and interests of the original car to the new car, or choose to give up their car rights and interests to deduct 30, 000 to 50, 000 yuan.

After the price adjustment, the price of the whole car is less than 300000 yuan for the first time, of which the starting price of ET5 is 298000 yuan. If the battery leasing scheme is adopted, the price will be further reduced to 228000 yuan, which is close to the price of similar products such as Tesla Model 3 and Feifan F7. In addition, the starting price of the ES6 is 338000 yuan, the ET7 is 428000 yuan, the ES7 is 438000 yuan, the EC7 is 458000 yuan and the ES8 is 498000 yuan.

In response to the price reduction, Li Bin said on the official APP: "this adjustment has been discussed internally for a long time and has listened to the opinions and suggestions of some users. There are so many aspects to consider that we are still deliberating over and over again at three o'clock this morning. Now is the most appropriate time to release, there must be some ill-considered places, can not make everyone satisfied, but also please understand and support! We will continue to power up and continue to serve you well! "

As a matter of fact, this adjustment was foreshadowed at the previous earnings conference. In the earnings call, Li Bin repeatedly mentioned the fierce competition in the auto market this year. He said that the market has changed very much recently and competition is intensifying further. For example, the market performance of ET7, ES7 and ET5 is not as good as expected. Due to the more fierce competition in the market, a number of target users have been lost in the competition. Li Bin said frankly that NIO is not only facing extremely challenging external markets, but also internal competition, such as ES7 users will flow to ES6, and so on. NIO is introducing targeted adjustments in this regard.

It is worth mentioning that Li Bin said publicly before that he would not cut prices in exchange for the market. At the beginning of the year, Tesla cut prices sharply, setting off the prelude to this year's price war in the car market. At the China Electric vehicle 100 people Forum (2023), Li Bin made it clear that he (Tesla) does not have the so-called industry pricing power in China's new energy vehicle market, and NIO will not participate in the price war. "Price war is definitely not the best way," Li Bin said. "if we want to think about what value we have created for users, it is difficult to imagine 'getting the best products and services at the lowest price', which is not true in economic theory."

On June 9, NIO announced its financial results for the first quarter of 2023, showing that during the reporting period, NIO realized operating income of 10.68 billion yuan, an increase of 7.7% over the same period last year, of which vehicle sales revenue was 9.22 billion yuan, down 0.2% from the same period last year; a net loss of 4.74 billion yuan, an increase of 165.9% over the same period last year; in addition, the gross profit margin for the first quarter was 1.5%, compared with 14.6% for the same period, and the gross profit margin for cars was 5.1%, compared with 18.1% for the same period.

The Tramway report believes that if the price is reduced by 30,000 yuan alone, then there will certainly be a significant boost to sales, but if there are prerequisites for price reduction, the effect of stimulating sales will be greatly reduced. Of course, it is not difficult to guess that NIOguan reduced 30,000 yuan and cancelled the rights and interests such as free electricity exchange for life, which may also be to stab the old car owner in the back.

Data show that a total of 43854 new cars were delivered from January to May in 2023, an increase of 15.81% over the same period last year, of which 6155 new cars were delivered in May, down 12.37% from the same period last year. In addition, delivery guidelines for the second quarter of 2023 are 23000 to 25000 vehicles, and delivery is expected to return to the 10, 000 level in June, according to the results.

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