In the package, NIO details the discounts it is offering for models due for a changeover, stock car discounts and cash discounts for NT 2.0 platform models.
(Image credit: CnEVPost)
NIO (NYSE: NIO) has released its official purchase discount package, with an executive again clarifying yesterday's media report after local media said the company was offering discounts of up to 100,000 yuan ($14,900).
The company's program released today includes subsidies for the purchase of its NT 1.0 platform models, additional discounts for stock vehicles and a small cash discount for the purchase of NT 2.0 platform models.
NIO is currently delivering models including the old ES8, ES6 and EC6 based on the NT 1.0 platform, and the ES7, ET7 and ET5 based on the NT 2.0 platform.
It launched two new models -- the EC7 coupe SUV and the new ES8 -- on NIO Day 2022, held on December 24, 2022, with deliveries to begin in May and June 2023, respectively.
For consumers who purchase the 2022 ES8, ES6, and EC6, they will receive the same amount of subsidies from NIO as the 2022 national subsidy if they lock in orders during this month.
China's new energy vehicle (NEV) support policies in 2022 included a national purchase subsidy as well as a purchase tax exemption. Both policies expired at the end of 2022, but the latter has been renewed until the end of 2023 and the former has not been renewed.
For individual consumers, they will receive a subsidy of RMB 11,340 for NIO models with 75-kWh battery packs and RMB 12,600 for 100-kWh packs.
For corporate customers, the subsidies are RMB 7,938 and RMB 8,820, respectively, which are both 70 percent of the amount available to individual consumers.
This is in line with the program announced by NIO on November 2, although the previous one was valid until December 31.
In addition, some city governments are offering subsidies, such as the Shanghai government's RMB 10,000 subsidy for those who replace their vehicles with NEVs, while Shanghai's Jiading district government is offering an additional RMB 20,000 subsidy for local residents to purchase a vehicle, NIO's program noted.
For some of the show cars, NIO is offering additional discounts.
NIO currently has a limited number of 2022 ES8, ES6 and EC6 long-stockage show cars, and consumers can enjoy different discounts when purchasing these vehicles depending on the age of the stock and the condition of the car.
Consumers who purchase an ES8 show car will receive a cash discount of up to RMB 24,000.
Consumers who purchase the ES6 and EC6 show cars will receive up to RMB 18,000 cash discount.
NIO also offers financial benefits for some models.
Buyers of the 2022 ES8, ES6 and EC6 can enjoy a 3-year interest-free loan program with a down payment starting at 15 percent.
Consumers who purchase the ET7, ES7 and ET5 can enjoy a 2-year interest-free loan program with a down payment starting at 15 percent.
The financing cap for ET7 and ES7 is RMB 300,000 and for ET5 is RMB 200,000, NIO noted.
Consumers who purchase an NIO vehicle this month can also choose a 5-year loan option with a down payment starting at 15 percent and an annualized rate of 1.99 percent.
For consumers who purchase a vehicle in full cash, NIO is offering additional discounts.
Consumers who purchase the 2022 ES8, ET7 and ES7 in full cash will receive a RMB 5,000 discount, and for the 2022 ES6, 2022 EC6 and ET5, the amount is RMB 3,000.
NIO is also offering discounts to encourage consumers to replace their original vehicles of other brands with vehicles from the company.
Consumers who purchase 2022 ES8, ES6, EC6 at the time of trade-in can receive the NIO Pilot package worth RMB 15,000.
If they purchase ET7, ES7, they can receive Moon package and orange calipers worth RMB 8,000.
If they buy ET5 at the time of trade-in, they can get 30,000 NIO Credits worth RMB 3,000 after getting delivery.
On February 2, local media Jiemian reported that NIO is offering discounts of up to RMB 100,000 ($14,900) on some models to boost sales.
The report quoted NIO salespeople as saying they have never seen such big discounts, but there are not many such cars available.
Considering the magnitude of the discounts, the report sparked a wide discussion in the Chinese community after it was published.
In a subsequent response shared with CnEVPost, NIO said that this is only a discount policy that NIO is offering to consumers for a small number of show cars and stock cars.
Qin Lihong, co-founder and president of the company, said today that the ES8, ES6 and EC6 are about to receive facelifts, but there are still some show cars and stock cars, so the company is offering some additional discounts.
However, claims of price cuts across the NIO model lineup are over-interpreted and non-existent.
"Some voices have stacked up our incentives to come up with a price cut of RMB 100,000, which is inaccurate," Qin said.
Qin also mentioned that NIO's measures to clear its inventory were not widely communicated to consumers in advance in the form of announcements, which is something the company did not do well.
Previously some NIO sales were a bit hasty in communication, which also needs to get regulated, he said.