- The Nio main brand extended its 7-year low-interest financing plan through the end of March, while its Onvo sub-brand additionally introduced purchase tax subsidies.
- These promotional measures underscore the sales pressure Chinese EV makers faced in the first quarter.
Nio Inc (NYSE: NIO, HKG: 9866) intensified promotional efforts in March to counter seasonal market weakness and subsidy phase-out impacts in China.
The electric vehicle (EV) maker today extended its seven-year low-interest loan program and introduced a purchase tax subsidy for its Onvo sub-brand.
For four lower-priced models under the Nio main brand — the Nio ET5, ET5 Touring, ES6, and EC6 — consumers purchasing this month can continue to enjoy the 7-year ultra-low-interest financing plan.
When purchased through the BaaS (Battery as a Service) program, the down payment threshold for these models drops to yuan 38,000 ($5,540), with an annualized rate of just 0.49%.
Nio announced the 7-year financing plan for these four models on February 1, originally valid until February 28.
Onvo, the mass-market sub-brand, announced it will offer up to yuan 10,262 in purchase tax subsidies for buyers in March.
Purchasers of the Onvo L60 and L90 SUVs (sport utility vehicles) can not only benefit from this subsidy but also utilize the 7-year low-interest financing plan.
As Chinese regulators discourage destructive price wars, ultra-long-term financing support is emerging as a new competitive weapon for automakers.
Tesla pioneered 7-year loans in China this January, with domestic players like Nio and Xiaomi following suit.
These aggressive promotional measures highlight the sales pressure Chinese EV makers faced in the first quarter.
With national car purchase incentives scaled back at the start of the year, Onvo brand deliveries dropped 62% month-on-month in January.
Despite challenges for the sub-brand, Nio's main premium models demonstrated relative resilience.
Driven by robust demand for its flagship SUV ES8, Nio Inc nearly doubled its total January deliveries year-on-year to 27,182 units.
Nio Inc is set to announce its February delivery figures later today.
($1 = 6.8582 yuan)
