NIO says it will keep its prices at a premium level instead of engaging in a price war with its competitors, according to CEO William Li in a recent interview with CNBC. Li emphasized that NIO’s products and services are worth the price, and the company will not compromise on quality or value for its customers. This sets the automaker apart from Tesla, which has slashed its prices in China this year to the lowest level ever.
Instead of lowering prices, NIO plans to enhance its customer services, including the expansion of battery swapping and charging stations. NIO’s battery swapping technology allows for a quick change of batteries, eliminating the need for drivers to wait for charging. However, NIO announced last week that starting June 1st, customers who put down deposits for certain car models will only be able to use the battery swapping service for free up to four times a month, down from six times previously.
NIO is also implementing a monthly charge of ¥380 ($74CAD/$56SD) for its Navigate on Pilot (NOP) plus assisted driving system, which was previously offered for free during testing. While assisted driving technology is currently not ranked as a top priority among users’ needs, Li believes that people’s perception of the technology will change once they experience it firsthand, and he expects assisted driving to become a standard feature in cars.
Despite NIO’s impressive vehicle sales growth of 37% last year, totaling ¥45.51 billion yuan (C$8.86 billion/US$6.61 billion), the company is still operating at a loss. Nevertheless, NIO remains committed to maintaining its premium pricing strategy, focusing on delivering high-quality products and services to its discerning customers.
