BREAKING: Nio cuts starting prices by $4,200 for all models and makes battery swap benefits optional

Including the battery, the starting price of Nio ET5 is reduced to RMB 298,000 and the new ES6 is RMB 338,000.

(Image credit: CnEVPost)

Nio (NYSE: NIO) has significantly lowered the starting prices of its entire lineup of models and made a key service previously offered for free now optional in an attempt to boost sales.

Starting June 12, the starting prices for all new Nio models drop by RMB 30,000 ($4,200), but the previously free battery swap service several times a month becomes a paid option, the company announced today.

Under the latest pricing system, the starting price of Nio's cheapest model, the ET5 sedan, is reduced to RMB 298,000, and the starting price of the vehicle is RMB 228,000 if consumers choose to lease the battery using the BaaS (battery as a service) plan.

The new ES6, which only went on sale and began deliveries late last month, starts at RMB 338,000 under the new pricing system and RMB 268,000 under the BaaS model.

Consumers who pay a deposit for an Nio model starting today will receive a 6-year or 150,000 km warranty for the first owner and a 10-year unlimited mileage warranty for the battery and powertrain. They will also receive 6 years of free internet connectivity, 8GB of monthly internet traffic, and free lifetime roadside assistance.

Consumers who pay the deposit for the new ES6 and the new ES8 on or before July 31 will still receive a free home charging pile.

The free battery swap service will no longer be available as a base benefit, and consumers will have the option to get the service for a single payment, Nio said, adding that the company will introduce flexible charging and battery swap service packages.

Customers who pay a deposit for a new Nio vehicle between June 12 and July 31 can pay RMB 30,000 for an upgraded service package, which includes:

Free lifetime battery swap service 4 times a month;

A 10-year unlimited mileage warranty on the vehicle;

Free lifetime car internet connectivity with 8GB of traffic per month;

Lifetime free roadside assistance.

Consumers who pay a deposit for the new ES6 and ES8 on or before July 31, and who also purchase the service package, can choose to forgo the free home charging pile entitlement and upgrade the number of free battery swap services to six per month.

For consumers who have already locked in their orders but have not yet received delivery, Nio will assume that they have purchased the upgrade package and maintain the same purchase price.

They can also contact Nio's specialists to cancel the upgrade package before delivery and have the purchase price reduced by RMB 30,000.

For Nio owners who have already received delivery, their benefits remain the same. If they purchase another Nio vehicle, they can choose to transfer the benefits from the original vehicle to the new vehicle.

If they give up the original free battery swap service of 4 or 6 times per month, then they can get a discount of RMB 30,000 when they repurchase a new Nio model.

For those owners who originally had unlimited free battery swap services for life, they can receive an RMB 50,000 discount on the purchase of a new Nio vehicle if they give up this benefit.

As of today, Nio has 1,484 battery swap stations in China and has provided more than 22.9 million free battery swap services. It also has 15,881 charging piles in China.

Nio's latest move is aimed at boosting weak sales, as it delivered 6,658 and 6,155 vehicles in April and May, respectively.

When the company reported first-quarter earnings on June 9, it guided for second-quarter deliveries of between 23,000 and 25,000 vehicles, meaning it expects June deliveries to be in the range of 10,187-12,187 vehicles.

(1 $= 7.1435 RMB)

Data table: Latest prices and wait times for NIO models after Jun 12 price cut